Fintech platform Crossfin sold to Ethos-led consortium

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Crossfin Technology Holdings, a fintech platform set up by Capital Eye Investments and Multiply Group in 2017, has been acquired by a group of investors led by Ethos Private Equity in one of the largest private equity-led deals in the sector in South Africa to date. The investor consortium is paying a total of R1.5 billion (or approximately $92 million at current rates) for the platform which was anchored by Capital Eye’s fintech assets at its launch followed by the addition of further acquisitions since then.

The deal gives Capital Eye, Multiply, and Andisa Capital full exits from Crossfin. At the time it was set up, Multiply held a 35% stake in the platform, but whether the respective stake sizes have changed since then remains undisclosed. The acquirers are led by Ethos’s Mid-Market Fund I and include some of the fund’s co-investors, as well as the private equity firm’s Ethos Artificial Intelligence Fund I, African Rainbow Capital, and founding members of Crossfin’s executive management team. The equity contribution of each consortium member and the size of the stakes now held by each has not been made available.

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