Zone, one of the fast-growing Africa’s payment infrastructure companies, has raised $8.5 million in a seed funding round led by VC firms Flourish Ventures and TLcom Capital
The fund raising marked a significant milestone in the company’s ongoing initiatives to build a Blockchain-based decentralized payment infrastructure for financial services providers in Africa and the other global digital payment markets.
By exploring the opportunities availed by blockchain, Zone has since it debuted in the digital payment market be delivering reliable and globally interoperable payment experiences at scale to financial service providers and their customers.
Currently, Zone, which is Africa’s first regulated blockchain network for payments, has already signed up over 15 of Africa’s largest banks and fintech companies.
Available information on the deal indicated that the new seed fund will enable the company to further expand the coverage of its network by connecting more banks and financial services companies and also utilize part of the proceeds to conducting a comprehensive pilot programme to test run its cross-border capabilities, scheduled for 2025.
Commenting on the funding round, CEO/Co-founder of Zone, Obi Emetarom, enthused: “The participation of high-quality investors despite the funding drought and the fact that we had more interested investors than we needed, is a sign of trust in the Zone brand and investor excitement about the opportunity to redefine payment infrastructure in Africa.
“As we step into this new phase at Zone, we are re-energized and our commitment to transforming Africa’s payment infrastructure is renewed.
“Our new investors and existing shareholders including CCA, Lateral Capital, Constant Ventures and V8 bring more than just financial backing as their global scope and deep expertise make them invaluable partners for us.
“With their support, we are poised to accelerate our mission to connect every monetary store of value and enable real-time payments within and across geographical borders. Zone is committed to staying at the forefront of technological advancement and industry evolution in financial services”, the fintech expert added.
In his remarks, Partner at Flourish Ventures Ameya Upadhyay, said: “For the first time in Africa, Zone’s technology enables direct communication between participants in the payment ecosystem. 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.
“We are excited by the potential for Zone’s technology to be replicated across borders to advance payment innovation globally. The fact that Zone is led by Obi and Wale who are veterans of the banking industry reinforces our conviction that Zone can fulfil our shared goal of moving the entire sector forward”, Upadhyay stressed
This is even as Partner at TLcom Capital, Ido Sum, expatiated: “We are thrilled to partner with Obi Emetarom and Wale Onawunmi, co-founders of Zone, on their journey to build a category-defining fintech company that is using advanced blockchain technology to solve a critical payments system challenge.
“The company’s innovative infrastructure has the potential to deliver tremendous value to financial institutions, enhancing the overall payments experience for end-users and driving down costs for hundreds of millions of consumers and businesses that rely on digital payments in Africa every day.
“We have no doubt that Zone, led by Obi and Wale, is on its way to transform into a global company over time, and TLcom is excited to bring its complementary experience, networks and expertise to support the Company in fulfilling its impressive scale ambitions”, he added
Based on the partnership arrangement, Flourish Ventures will provide Zone with a global perspective, networks of industry influencers and extensive Africa fintech expertise that will help in deepening the company’s penetration into new markets.
UK-based TLcom Capital will support Zone by providing essential local credibility and understanding of the African tech space while leveraging its existing relationships with key decision-makers in Nigeria to establish a strong foundation for Zone within its home market.
Other investors in this round include Digital Currency Group (DCG), VKAV (Verod-Kepple Africa Ventures) and Alter Global, each bringing niche sector expertise and credibility.
