Entersekt, a provider of identity and customer authentication software, has secured new investment from PAPE Fund 3, a South African private equity fund.
The transaction was signed last month and follows an investment by Silicon Valley-based Accel-KKR in December.
Entersekt was founded in Stellenbosch in 2010. The company says its software secures over one billion financial transactions every month, and protects millions of financial services customers across the globe.
According to a statement, following the funding, PAPE joins Entersekt’s shareholder base, which includes Nedbank Private Equity, Rand Merchant Investment Holdings and Accel-KKR, a private equity firm with a track record of successful investments in mid-market software and technology-enabled services businesses around the world.
The investments, notes Entersekt, will be used to fuel the company’s global expansion and support recent successes in regions such as the US and Latin America.
Dr Zuko Kubukeli and Ikageng Moatshe, principals at PAPE Fund Managers, led the transaction.
“Entersekt is a global market leader in the digital security landscape with scalable IT infrastructure and architecture,” says Kubukeli.
“At PAPE, we back local entrepreneurs with a global competitive-edge and provide strategic value-add and expansion capital. With the Entersekt team and shareholding structure, we believe we are poised for stellar growth.”
Managed by PAPE Fund Managers, PAPE Fund 3 is a level one BBBEE financial services provider licensed fund manager, which has over R1 billion in investor commitments.
Institutional investors in PAPE Fund 3 include various South African pension funds and asset managers, a Dutch development bank and a pool of family offices.
"We are thrilled to welcome PAPE on board,” says Schalk Nolte, CEO of Entersekt.
“The fund has a very strong footprint in our home market of South Africa, and their expertise will bring a valuable perspective alongside our existing shareholders. PAPE’s investment helps us further bolster operational support as we scale Entersekt in our strategic focus regions. We look forward to achieving great success together.”
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