South African fintech expert e4 announced today that it will be bought by a group of private equity investors led by independent private equity fund manager, Infinite Partners.
The deal, which is worth more than R1 billion, will give e4 the money it needs to move to the next stage of its growth.
e4 is a technology company that offers custom solutions and services, such as business automation and software creation.
e4 uses technology to improve business processes by focusing on software-as-a-service (SaaS).
The company says that the e4 executive team, which has experience in creating value through software development, drives diversification across businesses and adjacent geographic areas.
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e4 technological advances
By reusing its early-stage technology, e4 has created solutions that meet the needs of many different industries.
It also has a foothold in the property technology (proptech) space. Because of this, e4 has become an important part of many transactional environments.
The broader e4 Group employs over 200 professionals. It started a group in the UK in 2021. The group’s main goal was to strengthen e4’s relationships with mortgage lenders, conveyancing companies, and other partners in the UK.
The company says that this strategic purchase by Infinite Partners gives e4 the tools and help it needs to keep growing.
The deal includes 27four, which is a group of different financial services that spends money and helps independent asset managers.
Infinite Partners is a manager of private equity funds in Africa. It was set up in 2022 after Ethos Private Equity split off from it.
Edward Pitsi, CEO of Infinite Partners, says, “e4’s best chance for growth is to keep doing what it does well, which means selling more of its current goods and keeping up with its customers’ “blueprint adoption.”
“We are very excited about the chances for e4 to grow into other related areas while keeping a strong market place in the verticals it already serves.
The business recently expanded to the UK, which has a TAM (total addressable market) that is more than 10 times bigger than the market in South Africa. We will help management with this growth, as it can have a big effect on the business’s final results.
“Our experience managing growth plans, giving strategic input, and providing growth capital will be key to helping you take advantage of the opportunities set.”He also says that the strong leadership of e4 was a big reason why Infinite Partners chose to invest in the business.
“From the first time we worked with e4, we were impressed by how professional their management team was. Key roles are filled by people who have experience but are still eager to grow the business and take it to new heights.
“We’re excited to see how e4’s management will use their experience, knowledge, and connections with clients to lead strategic growth. As business partners, we will try to be both helpful and tough in order to work with management to get the best results.
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Attainable opportunities
Naomi Nethengwe, a principal at Infinite Partners agrees, “With its proptech offering, e4 works in digital and tech, a sector that Infinite Partners has identified as having structural growth potential.
“Proptech is little yet significant. Because e4’s technological stack is exportable and beneficial worldwide, we expect foreign expansion. Expanding to enterprises who wish to simplify document creation, management, and storage is also possible.
“e4’s SaaS business model fits with their investment strategy of focusing on mid-market companies with potential for growth and social impact,” says 27four group CEO and private markets principal Chad Potter.
“The investment will help e4 diversify its SaaS offerings, grow globally, and improve its B-BBEE credentials.”
The investment matches e4’s larger objective, according to CEO Grant Phillips. “For years, the e4 Group has grown steadily.
We’ve done this through strengthening our relationships with our local strategic partners and adding value to them. We’ve worked hard to diversify our income and reach. This new partnership benefits the firm because some of these initiatives are just starting.
“The whole consortium agrees with the organization’s strategy, backs the team implementing it, and has already started giving feedback on other opportunities we’ve found together.”
Phillips said the consortium’s diverse portfolios and investors provide for benefits, smart partnerships, and better collaboration.
“In addition to these asset-based opportunities, the enterprise sees a lot of value in using the consortium’s many years of organizational expertise and experience to improve how we keep growing in a sustainable, exponential way.”