Congo-based African web3 startup, Jambo, has completed its seed funding round. The startup, whose focus is on building Africa’s web3 user acquisition portal through “learn, play, earn,” has raised $7.5 million.
Jambo successfully raised the funds from investors like Coinbase ventures, Delphi Ventures, and Three Arrows Capital.
Other investors that participated in the round includes Alliance DAO, Tiger Global, DeFiance Capital, Hashed, Polygon Studios, UOB, Signum Capital, BH Digital, and Yield Guild Games, among others.
Aside building a web3 “Super app,” Jambo is also working on democratizing access to crypto-based income-generation opportunities.
Speaking on Jambo’s product, co-founder and CEO – James Zhang – said the company aims to lead web3 adoption in Africa, and decentralized finance (DeFi) services including currency exchanges and remittances.
“Honestly, anything that helps in Africa – send money, save money, make money – is what we’re testing off of the super app,” Zhang said.
“The reason we can do that is via partnerships with these companies as we tokenize a part of their advertising budget and directly provide to the end-user. Many web2 incumbents or even web3 are having a $100-200 user acquisition costs so we can lower that by order of magnitude by directly incentivizing the end-user.” Zhang added.
Zhang further explains that the startup is partnering with telecommunication providers to get about 70% discount, and sell directly to its users at a 50% discount from the original cost.
Capitalizing on the growing youthful generation of Africa’s population, as well as the smartphone penetration, unemployment and low GDP, Jambo is positioning itself to sign-up millions to its platform through its Super app.
Zhang plans to replicate the success recorded by gaming platforms like Axie Infinity and Yield Guild Games in Africa. These blockchain-based online video games have raised millions of dollars in venture capital due to the adoption of crypto and play-to-earn models.
James Zhang co-founded Jambo with his sister (both Congo-born Chinese) three months ago. Jambo maintained that it is currently testing 10 play-to-earn games which it plans to launch in a few months.
The startup claims to have already onboarded 12,000 across 15 African countries like Nigeria, Ethiopia, Zambia, Uganda, Kenya and, Congo.