Emerging Markets TMT Growth Fund II investing up to US$25 million...
Press releases August 2013
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...into Cash Credit to fund international expansion
Delta Partners Capital Limited (“Delta Capital”) announced today that a definitive agreement has been signed for an investment of up to $25m by Delta Partners Emerging Markets TMT Growth Fund II (the “Fund”) into the parent company of Cash Credit EAD and its affiliates, the Sofia, Bulgaria-based innovative provider of micro-financial services via mobile operators. This transaction will be the first investment by Delta Capital’s second fund.
Cash Credit, which began operations in early 2012, is a consumer finance company that partners with mobile network operators to offer micro financial services to mobile subscribers. The company uses an innovative, proprietary credit scoring approach to offer consumers rapid credit decisions, with convenient service and billing through their partner operators.
Delta Capital, based in Dubai, is the investment arm of Delta Partners Group, the leading emerging markets-focused telecoms, media, and technology advisory and investment firm. Delta Partners has approximately 200 employees operating from Barcelona, Bogota, Dubai, Johannesburg, and Singapore. Delta Capital held in January a first closing of $100 million on its second fund, which has a target of $350 million and will invest in growth capital opportunities in the TMT sector across Africa,
Central & Eastern Europe, the Middle East, and South-East Asia.
Geoffrey D. Fink, Managing Partner of Delta Capital, said today “Cash Credit is one of the most exciting companies we have identified globally in the rapidly-growing mobile financial services sector. We believe that mobile network operators worldwide will want to capture the opportunity to conveniently offer micro-financial services to their subscribers. Cash Credit’s proven track record of working with the two largest mobile operators in Bulgaria and its unique intellectual property and
know-how in this domain make it the ideal partner for the provision of such services. We look forward to using our extensive knowledge of the telecoms sector to actively assist Cash Credit in its plans for international expansion.”
Georgi Krumov, Founder and Executive Chairman of Cash Credit, commented “We are delighted that an investment firm with the experience and industry knowledge of Delta has decided to back us with capital and expertise as we expand our offering into a range of new markets. Cash Credit had various funding options, but Delta rapidly emerged as our preferred partner given their unique positioning as TMT industry experts with a broad emerging markets presence. We are convinced that Delta will actively support our ambitious growth plans as a value-added investor.” Transaction terms were not disclosed. The Fund’s capital will be used to fund the further growth and international expansion of Cash Credit. Mr. Fink and Boris Nemsic, Executive Partner at Delta Capital and former CEO of Telekom Austria and Vimpelcom, will join the Board of Cash Credit upon completion of the transaction. Closing of the transaction is subject to the satisfaction of customary conditions precedent and the receipt of all necessary regulatory approvals.
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