The capital injection will be used to fund international expansion and research and development. All regulatory approvals have been obtained, including the Competition Commission of South Africa.
Entersekt targets global enterprises which require user-friendly and solid authentication and security products for interactions with their customers. Entersekt’s patented security products already protect close to 100 million transactions monthly and comply with the most stringent global regulatory guidelines. While the focus is financial services, the products and solutions have wider application in industries such as healthcare and insurance which also face security and regulatory challenges.
The company’s patented solution creates a secure channel between enterprise and user that not even Entersekt themselves can intercept, with banking clients seeing up to a 99% reduction in mobile fraud losses since implementation. Entersekt has already secured several large banking clients including Absa, Nedbank, Capitec, Investec, Swisscard, Equity Bank, Ecobank, Pluscard and First Bank of Colorado. The company has also extended beyond the banking sector providing authentication solutions for Old Mutual among others, and has signed reseller agreements in Europe and in the US. Entersekt continues to have a strong sales pipeline.
Mobile authentication is a fast-growing industry that is an enabler of financial services driven by the need to perform riskier transactions more simply without complex authentication processes. Recently a client’s customer processed a $65 million transaction via the mobile using Entersekt’s encryption technology. Entersekt’s disruptive model significantly reduces fraud at lower cost than other technologies while providing superior fraud prevention.
Dominique Collett, RMI Senior Investment Executive and head of AlphaCode explains the rationale for investment, “RMI through AlphaCode seeks investments in next generation fintech opportunities. We look for high growth businesses that are ready to scale and are led by strong entrepreneurial management teams. Entersekt met all these criteria. As RMI has experience of scaling companies globally and as providers of growth capital, we believe that this deal will add value to our portfolio of blue chip investments. It is AlphaCode’s second investment after Merchant Capital, which provides SMEs with working capital finance.â€
Marthin Greyling, a Principal in the Nedbank Private Equity team commented: “Entersekt’s proven success in deploying its unique product offering at leading financial institutions as well as their strategic positioning to take advantage of the global growth in mobile application security and transaction authentication, make Entersekt an appealing investment. We look forward to partnering with AlphaCode and the existing shareholders to support the company’s global growth aspirations.â€
“We are immensely honoured that investors of such a high calibre have endorsed our long-term vision in this way,†said Schalk Nolte, Entersekt’s CEO. “We look forward to working together at a board level to unlock the significant potential we see in the global market. We can now accelerate beyond our very healthy organic growth and rapidly establish a presence in new territories. We have a solid foothold in Africa, Europe and the United States, but our technology can provide as much value to enterprises in other regions. Enterprise-grade security solutions that streamline consumer mobile experiences, meet compliance obligations, and provide a launchpad for innovation have wide and growing applicability.â€
About Entersekt
Entersekt is an innovator in push-based authentication and app security. The company’s one-of-a-kind approach harnesses the power of digital certificate technology with the convenience of mobile phones to provide financial services companies and their customers with full protection from online fraud. Built on open technologies for high availability, scalability, and simple integration, Entersekt’s patented security products protect millions of devices and transactions daily, while complying with the world’s most stringent regulatory guidelines. Enterprises across the globe look to Entersekt to strengthen the bond of trust they share with their customers, and to build on those relationships by introducing compelling, user-friendly new mobile and online services. www.entersekt.com.
About BoE Private Equity Investments
BoE Private Equity Investments is the investment vehicle for the Nedbank Private Equity business, one of southern Africa’s prominent mid-market private equity investors, with an established track record of successfully investing and partnering with management teams across a diverse range of growth companies and sectors. www.nedbank.co.za
About Rand Merchant Investment Holdings
Rand Merchant Investment Holdings, also referred to as RMI Holdings, is a JSE-listed investment holding company with an investment team of experienced, alternative thinking financial services specialists who actively partner smart and industry-changing management teams by being a stockholder of influence. www.rmih.co.za.
About AlphaCode
AlphaCode, a collaborative club for next generation financial services entrepreneurs, seeks to create a financial services entrepreneurial ecosystem by bringing together entrepreneurs, intrapreneurs, industry experts and thought leaders to connect, share knowledge and ultimately reshape the industry. AlphaCode was set up by the founders of RMI to identify, partner and grow disruptive, sustainable and scalable fintech businesses that will change the landscape of the financial services industry. www.alphacode.club
View source version on businesswire.com: http://www.businesswire.com/news/home/20170606006716/en/
Contacts
Entersekt:
Jeanne Maartens, +27 21 815 2800
SVP Marketing
jeanne@entersekt.com
or
RMI/AlphaCode:
Michelle K Blumenau, +27 83 273 9891
michelle@turquoisepr.co.za
or
Nedbank Private Equity/BoE Private Equity Investments:
Marthin Greyling, +27 11 295 8320
marthing@nedbank.co.za
Source: Rand Merchant Investment Holdings and BoE Private Equity Investments and Entersekt
Reporter: PR Wire
Editor: PR Wire
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