PayDay, a Nigerian neobank, has raised $3 million in a seed funding round led by Moniepoint. TechCabal solely reported three weeks in the past that Payday was trying to increase $1.5 million in a seed round and right this moment’s announcement disclosed that the round was ultimately oversubscribed.
Other traders embody Techstars, HoaQ, DFS Lab’s Stellar Africa Fund, Ingressive Capital Fund II, MFS Africa chief; Dare Okoudjou, Norebase CEO; Tola Onayemi, and present traders; Techstars and Angels Touch. TechCrunch experiences that with this increase, PayDay has obtained a complete of $5 million since its inception two years in the past.
Payday allows Africans entry to world accounts denominated in USD, EUR, and GBP. With the flexibility to transact in over 20 currencies, Payday’s platform is important for distant staff and freelancers who want international foreign money transactions. The app is at present solely obtainable to prospects in Rwanda and Nigeria. In addition to those companies, Payday additionally provides digital greenback and naira playing cards for Nigerian customers, facilitating purchases on worldwide platforms, foreign money swaps, cost hyperlinks, native invoice funds, and peer-to-peer transfers.
Competition and a rejected acquisition
PayDay’s options put it in competitors with VC-backed B2C fintech apps reminiscent of Grey, Lemonade Finance, Send by Flutterwave, and Chipper Cash. The firm has ramped up its social media advertising push over the previous couple of months and claims it has tripled its person rely to over 300,000 since final yr. PayDay admitted to TechCrunch that its advertising spending is consuming deep into its pocket however the founder Favour Ori insists that the corporate stays worthwhile.
According to Ori, PayDay has been worthwhile since August 2022 by way of the charges it fees on transactions they usually have quadrupled with its growing person base. The startup reportedly processes an common of 40,000 transactions each day and over $25 million month-to-month.
It not too long ago turned an official cost accomplice for SpaceX’s Starlink, enabling customers in Nigeria and Rwanda to buy Starlink routers. It claims to have processed near $1 million already for Starlink.
Ori additionally acknowledged that, as a result of its profitability, the startup has obtained and turned down a $15 million acquisition supply by an African unicorn.
Payday says it plans to make use of the increase to ramp up its advertising efforts, safe operational licensing in each the UK and Canada, and improve its workers.
…. to be continued
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