Waza has raised $8 million to improve the financial technology sector in Africa.
TechCrunch mentions that emerging economies tend to buy more from other countries than they sell, leading to an increase in demand for U.S. dollars to trade internationally. Combined with limited supply, trading can be more expensive. The outlet also notes that Africa’s lack of technological solutions worsens the issue.
Thus, Waza’s efforts are timely for Africa because it exists to ensure Africa-based companies and traders can have liquidity and more seamless B2B payments using U.S. dollars, euros, and Great Britain pounds, per the company website.
Within its first month of operations, the company’s payment volume reached $280,000, according to TechCrunch. In May 2024, those numbers had dramatically increased, with $70 million in monthly payment volume equating to $700 million in annualized transaction volume, Co-Founder and CEO Maxwell Obi confirmed to TechCrunch.
“Cross-border payments in the context of trade is for businesses to pay their suppliers fast and expect the product to come quickly as exchange rate plays a part in how much they make,” Obi said, per TechCrunch. “So our value proposition has always been on affordability and speed of settlement. We also have much more control of our payment infrastructure versus the competition out there. It’s why we’re able to be a cheaper option out there in the market, and that’s how we’ve been able to corner our customers so far.”
The platform is considering launching a banking product that could also encompass the digital economy. This would be supported by its $8 million seed round, including $3 million in equity from Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, and Olive Tree Capital. Additionally, the company raised $5 million in venture debt financing from Timon Capital and plans to help support large enterprise clients with trade financing, per TechCrunch.
“This new funding brings us closer to our vision of transforming B2B payments and access to liquidity for businesses across the continent,” Obi mentioned in a news release. “By providing a more efficient settlement infrastructure, we are bridging the foreign exchange and liquidity gap and empowering African businesses to access more global trade opportunities that will drive economic growth and development in the markets we serve.”
