Africa’s fintech sector continues to grow at a rapid pace. A young, mobile-first population and evolving financial regulations are fueling the rise of digital financial services. From mobile money platforms in Kenya to payment processors in Nigeria and Zambia, fintechs are gaining traction. However, expansion across African markets presents legal, regulatory, and operational challenges that funding alone cannot address.
Some investors are bridging this gap. Firms like Velex Investments are combining financial capital with legal and operational expertise to help fintechs scale efficiently and avoid costly setbacks. This model is proving essential as fintech companies aim to grow beyond their home markets.
Two Investment Models, One Shared Goal
Venture capital and private equity offer different paths to growth. Both play essential roles in Africa’s fintech landscape.
Venture capital usually supports early-stage startups. These investors take smaller stakes in companies and accept higher risk. In return, they offer strategic input, mentoring, and connections that help businesses launch and gain traction.
Private equity tends to focus on companies with steady revenue and proven business models. PE investors take larger or controlling stakes. They work to improve financial performance, strengthen governance, and support long-term strategy. Traditionally active in sectors like infrastructure and manufacturing, PE firms are now turning to fintech.
Although the approaches differ, the gap between VC and PE is narrowing. Some firms, including Velex, combine early-stage investment with hands-on support in legal structure, regulatory compliance, and operations. This blended model is especially valuable in fintech, where regulatory demands appear early and vary widely across borders.
What Makes Scaling Across African Markets So Complex
Expanding a fintech business in Africa is rarely a straightforward process. Each country has its own set of requirements. Founders and investors must account for three main areas of complexity:
- Regulatory variation. Central banks in each country set different rules for licensing and compliance. A fintech licensed in Nigeria must undergo a separate process to operate in Kenya or Zambia.
- Legal requirements. Company structures, shareholder agreements, and intellectual property protections must follow local laws.
- Operational differences. Payment systems, telecom networks, and banking partnerships are not consistent across markets. Fintechs often need to adjust their platforms or partner strategies to meet local conditions.
These challenges slow down expansion for companies that focus only on product development or user growth. Investors who help companies address legal, regulatory, and operational needs from the start position them for smoother, more sustainable growth.
Velex works closely with fintech founders early in the process. They help establish legal entities, prepare filings, and set up governance frameworks that support expansion into new markets. This early-stage involvement reduces friction and helps companies avoid costly errors during launch.
Practical Examples: AvadaPay and Zoyk
Velex-backed fintechs AvadaPay and Zoyk both expanded successfully into new countries by combining capital with legal and operational preparation. Their experiences offer a clear view of how early strategic planning helps fintechs manage complex regional growth.
AvadaPay: Coordinated Launch Across Three Countries
Image: AvadaPay Logo | AvadaPay
AvadaPay, a digital payment aggregator, expanded into Nigeria, Kenya, and Botswana. Each market presented unique challenges. Kenya had strict compliance expectations from the central bank. Botswana required local partnerships with licensed payment service providers. Nigeria, while familiar, involved a separate regulatory process.
Velex helped AvadaPay navigate these differences by supporting the preparation of legal filings, developing tailored governance frameworks, and coordinating local partnerships. Their team worked with in-country legal counsel to align operations with each country’s regulatory environment. They also assisted in structuring shareholder agreements to fit local requirements and avoid future conflicts.
This preparation allowed AvadaPay to complete licensing procedures without delays or penalties. As a result, the company was able to focus on delivering its product and building its customer base, rather than being sidetracked by regulatory setbacks.
Zoyk: Transition from Local to Regional Operations
Image: Zoy logo | Website
Zoyk, a licensed payment service provider in Zambia, expanded into Malawi and Zimbabwe. This required the creation of new legal entities, updates to corporate governance documents, and direct engagement with financial regulators in both countries.
Velex provided step-by-step guidance during the expansion process. They advised on licensing requirements, helped revise shareholder agreements, and coordinated communication with local authorities. By handling the legal and regulatory details, Velex enabled Zoyk to maintain operational continuity and avoid disruptions during its transition.
With this support, Zoyk successfully evolved from a national player into a regional fintech business. The company’s ability to meet compliance requirements and manage regulatory risk across markets provided the foundation for sustainable growth.
Technology That Adapts to Local Rules
Zoyk and AvadaPay operate within regional fintech ecosystems where platforms like Unipesa provide technological infrastructure and integration capabilities.
Unipesa provides a single API that connects with mobile money, card, and bank systems. This allows companies to integrate payment networks without building separate systems for each market.
Unipesa does not rely on a fixed setup. Instead, it adapts to each country’s licensing, reporting, and data protection requirements. It also works closely with local partners to stay aligned with national regulations.
This flexibility makes it easier for fintechs to enter new markets. Rather than reworking infrastructure each time, companies can adjust only where needed. For investors, this translates into faster time-to-market and lower operational risk. Unipesa’s structure, when combined with legal guidance from Velex, gives companies a reliable framework for regional growth.
Legal Planning as a Foundation for Growth
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Fintech companies cannot treat legal and regulatory planning as an afterthought. These areas determine how quickly a business can enter new markets and how well it can manage compliance risks. They also influence how attractive the company is to investors.
Velex focuses on three core areas:
- Licensing support. Guiding companies through application processes to meet the expectations of local regulators.
- Corporate structuring. Creating shareholder agreements and governance frameworks that match legal requirements in each market while supporting business goals.
- Technology and IP protection. Helping fintechs meet data privacy standards and safeguard their proprietary systems.
By addressing these issues early, fintechs reduce the risk of delays and legal problems. They also give investors greater confidence in the company’s long-term potential.
Questions Founders and Investors Should Ask
Before entering new markets or accepting capital, founders and investors need to ask the right questions to ensure the business is ready to grow:
- Has the company reviewed licensing and compliance requirements in its target markets?
- Are there experienced legal and operational partners involved?
- Can the platform meet local compliance standards without extensive changes?
- Do the governance documents support growth across jurisdictions?
Companies that can answer these questions with confidence are in a stronger position to grow. This process also helps investors identify startups that are prepared not only to launch but also to sustain growth in complex markets, adds Vadim Mildov, Executive Chairman at Velex Group.
Nikita Perevezentsev, Senior Portfolio Manager at Velex Investments, says that regulatory planning, corporate structure, and infrastructure are as important as the product. The most successful investors support both funding and execution.
Fintech Growth That Crosses Borders
Africa’s most forward-thinking fintech companies are not building for a single country. They plan to operate across several markets from the start. This kind of growth requires more than capital. It depends on flexible technology, legal readiness, and partners who stay engaged beyond the initial investment.
Velex’s work with AvadaPay, Zoyk, and Unipesa shows that fintechs can grow faster and with less risk when funding is backed by strategic support.
For investors, the takeaway is clear. Writing a check is only the beginning. Building long-term value in African fintech means helping companies expand legally, operate efficiently, and stay compliant across borders.
