Cassava Technologies (Liquid’s Parent) Secures US$310m in Funding and Reorganises

A few months ago we talked about Liquid Intelligent Technologies being in some financial bother. The company has some good news on that front.

Liquid’s group has three main things to report.

1. USD 90 Million Equity Investment: Cassava Technologies secured $90 million from the U.S. International Development Finance Corporation (DFC), Finnfund, and Google LLC to strengthen its balance sheet and drive growth.

2. USD 220 Million Debt Refinancing: Liquid successfully refinanced its South African Rand term loan with facilities provided by Standard Bank, Rand Merchant Bank, Nedbank, and IFC. It was mainly this loan which was responsible for Liquid getting a credit downgrade. Hopefully, this debt refinancing scheme will help with that.

3. Business Reorganization Completion: Cassava finalized its legal reorganization, creating an integrated digital solutions platform to deliver broadband, data centers, cloud, AI, cybersecurity, and payment services across over 30 markets.

Here’s the full release:

Cassava Technologies (Cassava), a global technology leader of African heritage, proudly announces three significant milestones: a substantial equity injection, the successful completion of its South African Rand (ZAR) debt refinancing, and the finalization of its legal reorganization. These strategic initiatives position Cassava for robust growth underpinned by a strong balance sheet.

Cassava has closed an equity investment round of $90 million with participation from U.S. International Development Finance Corporation (DFC), Finnish Fund for Industrial Cooperation (Finnfund), and Google LLC. This funding is a key part of Cassava’s plan to strengthen its balance sheet, drive sustainable profitable growth, and cement its position as a global technology company of African heritage.

The conclusion of this equity round coincides with the successful reorganization of Cassava’s business to create an integrated digital solutions platform. This platform provides Broadband Connectivity, Co-location (data centres), Cloud, Cybersecurity, Compute (AI), and Payment services across more than 30 markets in Africa, the Middle East, India, and Latin America.

Additionally, Liquid Intelligent Technologies, a business of Cassava Technologies, has successfully signed new facilities to refinance its South African Rand term loan on a multi-tenor basis. The new facilities, equivalent to USD 220 million in South African Rands, are being provided by Standard Bank of South Africa, Rand Merchant Bank, Nedbank of South Africa, and International Finance Corporation (IFC).

“We are excited to announce these significant achievements, which collectively strengthen our financial position and are a powerful testament to the vision of our founder and Group Chairman, Strive Masiyiwa, and the dedication and commitment of our teams across the Group,” said Hardy Pemhiwa, President and Group CEO of Cassava. “The closing of this equity round, completion of our ZAR debt refinancing, and reorganization represent more than just capital – it’s a pivotal milestone that we expect to unlock immense value and catalyze the further expansion of our digital infrastructure and services to bridge the digital divide on the continent”.

With the addition of DFC, Google LLC, and Finnfund, Cassava’s impressive roster of shareholders includes Econet Group, British International Investment (BII), Public Investment Corporation (PIC), Royal Bafokeng Holdings (RBH), Africa-Export Import Bank (Afreximbank/FEDA), and Gateway Capital.

Cassava Technologies has built a strong portfolio of business units comprising Liquid Intelligent Technologies, Africa Data Centres, Liquid C2, Cassava.ai, and Sasai Fintech, all of which are leaders in their respective sectors. This integrated platform of business units enables the Group to fulfill its vision of a digitally connected future that leaves no African behind.