Canza Finance raises $2.3m to scale cross-border payment solution
- Canza Finance, a Web3 neobank, raised $2.3 million in its strategic funding round to obtain licenses and build its FX DeFi platform.
- The company aims to simplify access to financial services for businesses, which is usually limited to larger corporations.
- Canza collaborates with FX agents in different regions, offering a faster and cost-effective solution for cross-border payments.
Canza Finance, a Web3 neobank focused on facilitating cross-border payments for African startups, has successfully concluded a strategic funding round, raising $2.3 million. The company plans to utilize the funds to acquire licenses from diverse financial regulators across Africa and establish the groundwork for its FX DeFi platform, Baki.
Pascal Ntsama, Co-founder and CEO of Canza, expresses the company's mission to simplify access to financial services for businesses, a privilege often reserved for larger corporations. Canza collaborates with foreign exchange (FX) agents in various regions, providing a faster and more cost-effective solution for sending and receiving money.
Having accumulated $5.5 million in funding, including a previous $3.27 million seed round last year, Canza's latest funding round was led by Polychain Capital. Other participants in the round include Protocol Labs, Avalanche’s Blizzard Fund, 99 Capital, Stratified Capital, Hyperithm, and several others.
Canza Finance exemplifies a critical application of blockchain technology, particularly addressing challenges faced by businesses in African markets such as Nigeria, Cameroon, and Senegal when conducting cross-border payments. Traditionally, these businesses need help with slow and costly methods for international transactions, hindering their ability to obtain favorable deals, engage in international financial activities like stock trading, or earn interest on their funds. Canza's FX DeFi platform, Baki, leverages stablecoins—digital currencies pegged to the dollar—to assist businesses in seamlessly swapping their currencies to the dollar without incurring substantial forex fees. This strategic use of stablecoins and decentralized finance (DeFi) tools enables Canza to provide businesses with dollar stability and overcome the challenges associated with traditional forex processes. The result is a remarkable reduction in transaction costs to a reported mere 1%.