Nigerian Fintech Afriex Has Raised $10 Million In Series A Funding
Fintech startup, Afriex has closed a $10 million Series A round to expand its blockchain money transfer platform. The company, valued at $60 million runs a money transfer system that utilizes blockchain to enable users to send funds by converting them into stablecoins, which are cryptocurrencies backed by reserve assets. This process makes the transaction free and quicker.
Launched in 2019, the startup founded by Tope Alabi and John Obirije had raised a $1.3 million seed round last May. The latest funding round was financed by Sequoia Capital China and Dragonfly Capital with participation from Goldentree, Stellar Foundation, and Exceptional Capital, among others.
Afriex launched amongst an explosion of fintech companies targeting underserved and often overlooked, consumers in Africa, said Forbes. Data from CB Insights found that more than $1.4 billion was invested into African fintech companies in 2021, a nearly 7x increase over 2020.
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Afriex processes more than $5 million in monthly transfers, Wise moves an average of £4 billion ($5.2 billion) a month for comparison, but Afriex has grown its customer base by 500% in the last six months with half of its active users using the platform more than once a week. The startup makes money by arbitraging the currency and crypto exchange rates when a customer transacts. Afriex declined to share its revenue. It raised a $1.3 million seed round last May and has just closed a $10 million Series A round at a $60 million valuation. The financing was coled by Sequoia Capital China and Dragonfly Capital with participation from Goldentree, Stellar Foundation and Exceptional Capital, among others.
The startup makes money by arbitraging the currency and crypto exchange rates when a customer transacts. Afriex declined to share its revenue.
While Afriex is currently just focused on its core money transfer product, Alabi has ambitious goals for the platform. He hopes to use it to launch a stablecoin and has already inked a partnership with Visa to offer Afriex users credit and debit cards later this year.