Venture capital firm Crossfin has invested in DigiSquad, a Johannesburg-based payments advisory and platform provider focused on underserved African markets. Although the investment amount remains undisclosed, the capital injection will drive DigiSquad's plans to expand financial inclusion across the African continent, targeting both public and private sector clients.

DigiSquad, founded in 2015 by Bishmen Kumalo, provides advisory, consulting, product development, and data analytics services to clients across Africa and the United States. The company claims it is bridging the gaps in financial inclusion by designing products tailored for communities ignored by traditional financial institutions. Over 18 months, DigiSquad built its flagship platform, DigiEngine, which recently secured a contract as one of Eskom's five national vending agents.

According to Crossfin, the collective experience and expertise within the squad have enabled the company to compete on an even footing with larger, more established companies. DigiSquad's commitment to redefining digital innovation as a black woman-owned fintech resonates with Crossfin's demonstrated commitment to supporting fintechs focused on high-impact, often underserved segments.

"Africa's payments sector is rife with innovation, but many products for underserved communities overlook existing local solutions," Kumalo said in a statement. "We are enabling these solutions through our digital offerings and are committed to redefining digital innovation as a black woman-owned fintech."

Crossfin's co-founder and CXO, Anton Gaylard, noted that DigiSquad attracted them because of its cloud-based payments platform that holds great relevance across their portfolio and has already enjoyed the endorsement of Eskom. "We look forward to using their expertise across our portfolio and supporting them as they build out an exciting payments business," Gaylard said.

This investment is significant, as it highlights the growing importance of fintechs in addressing the financial inclusion gap in Africa. With DigiSquad's expertise and Crossfin's support, the partnership is poised to drive meaningful change in the continent's payments landscape. As the African fintech ecosystem continues to evolve, collaborations like this will play a crucial role in unlocking the region's economic potential.

The deal also underscores the increasing recognition of the need for more diverse and inclusive fintech solutions. As a black woman-owned fintech, DigiSquad's success will pave the way for more entrepreneurs from underrepresented groups to enter the industry. This investment is a step in the right direction, and its impact will be felt far beyond the African continent.