In a significant move that could reshape the payment landscape in Africa, Zone, a Nigerian fintech startup, has secured $8.5 million in an oversubscribed seed funding round. The investment was co-led by Flourish Ventures and TLcom Capital, with participation from prominent international investors such as Digital Currency Group (DCG), VKAV (Verod-Kepple Africa Ventures), and Alter Global.
Founded by industry veterans Obi Emetarom, Emeka Emetarom, and Wale Onawunmi, Zone is pioneering a blockchain-based decentralized payment infrastructure that aims to streamline transactions and enable real-time payments within and across geographical borders.
The company’s innovative solution leverages blockchain technology to facilitate direct communication between participants in the payment ecosystem, eliminating the need for intermediaries. This groundbreaking approach promises to deliver a new standard of reliability, speed, and cost efficiency for ATM transactions, point-of-sale (POS) machines, and online payments.
According to Obi Emetarom, Zone’s CEO and co-founder, the participation of high-quality investors, despite the ongoing funding drought, is a testament to the trust in the company’s brand and the investor excitement surrounding the opportunity to redefine payment infrastructure in Africa.
“With the support of our new investors and existing shareholders, we are poised to accelerate our mission to connect every monetary store of value and enable real-time payments within and across geographical borders,” Emetarom stated.
Zone has already made significant strides in the Nigerian market, securing a switching license from the Central Bank of Nigeria and onboarding over 15 of the continent’s largest banks and fintech companies. The startup has processed transactions at more than 6,000 ATMs for over 10 million cardholders and has facilitated over $1 million in transactions within just three months of launching its ATM use case.
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The fresh funding will enable Zone to further expand its network coverage domestically, connecting more banks and financial services companies. Additionally, a significant portion of the proceeds will be allocated to conducting a comprehensive pilot program to test the company’s cross-border capabilities, scheduled for 2025.
“We believe this is a fundamental leap that will allow customers to experience a completely new standard of reliability, speed, and cost efficiency at the ATM, at POS machines, and online,” said Ameya Upadhyay, Partner at Flourish Ventures, expressing excitement about Zone’s potential to drive payment innovation globally.
With its innovative approach and backing from prominent investors, Zone is poised to reshape the payment infrastructure landscape in Africa, paving the way for a seamless, secure, and efficient financial ecosystem.