Flourish Ventures has invested in Akua, a Colombian fintech company developing a next-generation processing platform for merchant acquirers to enhance efficiency and innovation in the payments industry.

Information on the Target

We are proud to announce our investment in Akua, marking our first venture in Colombia. Akua is developing a next-generation processing platform tailored for merchant acquirers, beginning its operations in Colombia with aspirations to expand throughout Spanish-speaking Latin America. The founding team is seizing an opportunity that arose when Colombia's central bank enacted regulations in 2022, which liberalized the acquiring market and encouraged innovation and competition.

Industry Overview in Colombia

The acquiring processing market in Latin America is substantial, generating up to $10 billion in annual revenues from transaction fees, service charges, and value-added services. However, Colombia faces significant challenges due to outdated processing systems and the dominance of two incumbent operators that control 80% of the market share. These legacy systems lead to elevated operational costs and slow transaction speeds, ultimately hindering adaptability to new digital payment forms.

Moreover, the prevalence of legacy technology has suppressed innovation in the market, leaving merchant acquirers in Colombia and similar regions in need of modern solutions to effectively