Nigeria's Zone raises $8.5m to scale decentralized payment solution
TLDR
- Nigerian fintech startup Zone secures $8.5 million in seed funding round led by Flourish Ventures and TLcom Capital.
- Funding to bolster Zone's blockchain-based decentralized payment infrastructure for financial services in Africa.
- Zone set to expand network coverage domestically and conduct cross-border validation in 2025 pilot program.
Nigerian fintech startup Zone has secured $8.5 million in an oversubscribed seed funding round aimed at bolstering its blockchain-based decentralized payment infrastructure for financial services providers across Africa and beyond.
The financing round was led by Flourish Ventures and TLcom Capital, with notable participation from Digital Currency Group (DCG), Verod-Kepple Africa Ventures (VKAV), Alter Global, and Endeavor Catalyst.
With this injection of capital, Zone is poised to expand its network coverage domestically and forge connections with additional banks and financial services firms. A substantial portion of the funds will also be earmarked for conducting a comprehensive pilot program in 2025 to validate the company's cross-border capabilities.
Key Takeaways
African financial institutions often leverage a combination of local and foreign technology solutions to scale their operations. In this landscape, Appzone stands out as a leading local fintech software provider for banks and fintechs, offering competitive pricing and enhanced flexibility. Zone, another emerging player, adopts a straightforward approach: acknowledging the inadequacy of Africa's current payment infrastructure for transitioning to a cashless future and developing an interoperable payment ecosystem using blockchain technology. Blockchain technology, renowned for its scalability, serves as the foundation for Zone's infrastructure. It has been pivotal in enabling banking and payment operations for over a decade. It has developed custom software and software-as-a-service products, catering to the needs of more than 18 commercial banks and over 450 microfinance banks across Africa, including markets like Ghana and Kenya. This track record positions both Zone and Appzone as significant players in Africa's fintech landscape, driving innovation and digitization across the continent's financial sector.
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