Sew, the South Africa-based funds infrastructure firm, has acquired Efficacy Funds, a digital funds startup with direct entry to the nationwide clearing system. The acquisition offers Sew management over each layer of the cardboard fee stack, making it one of many first fintechs in South Africa to supply end-to-end card-acquiring companies with out counting on banks or third-party processors.
The deal, Sew’s second main strategic acquisition, strengthens the corporate’s play for dominance in South Africa’s digital funds sector at a time when the market is booming. In line with GlobalData, the South African card funds market is anticipated to hit R2.9 trillion ($159 billion) in 2025.
Based in 2016, Efficacy Funds turned a Designated Clearing System Participant (DCSP) in 2021, turning into the second fintech in South Africa licensed to clear card funds immediately. Sew will now assume that position, enabling it to course of in-store and on-line card funds on behalf of retailers with fewer intermediaries.
“Card processing is a vital requirement for companies in South Africa, and we now have seen a number of room for enchancment in terms of conversion, recon capabilities, and entry to the most recent know-how. We’re excited to see the impression this may have on the best way our retailers accumulate card funds from their prospects,” stated Junaid Dadan, President and Co-founder at Sew.
The transfer follows Sew’s earlier acquisition of ExiPay, which expanded its attain into point-of-sale infrastructure. Collectively, the offers permit Sew to supply a complete suite of digital and in-person fee companies, together with gateway, switching, and now buying, beneath one roof.
With this integration, Sew shoppers, which embody main South African enterprises akin to Takealot, Mr. D, MTN, Vodacom, Hollywoodbets, and Commonplace Financial institution’s Shyft, can count on quicker settlements, real-time transaction visibility, and fewer reconciliation complications.
Based in 2021, Sew has raised $107 million so far, together with a $55 million Collection B spherical in April 2025.
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