Nigerian Fintech Zone Raises $8.5M Seed Round

March 19, 2024 : Nigerian fintech company Zone has secured $8.5 million in seed funding to bolster its development of a decentralized payment infrastructure. This significant investment, led by Flourish Ventures and TLcom Capital, empowers Zone to scale its operations and establish itself as a key player in Africa’s evolving financial landscape.

Zone differentiates itself by leveraging blockchain technology to create a decentralized payment network. This network facilitates direct connections between participating institutions, enabling them to execute financial transactions without the need for intermediaries. This streamlined approach promises faster settlement times, reduced transaction fees, and increased efficiency.

The funding round attracted participation from a consortium of prominent venture capital firms, including Digital Currency Group (DCG), Verod-Kepple Africa Ventures (VKAV), Alter Global, and Endeavor Catalyst. This broad investor base signifies the growing confidence in Zone’s innovative approach and its potential to revolutionize the African payments landscape.

Zone’s vision extends beyond domestic borders. The company intends to use the newly acquired capital to expand its network coverage within Nigeria while initiating pilot programs for cross-border transactions. A successful pilot program targeted for 2025 would pave the way for seamless international payments within the African continent.

Zone’s unique positioning as Africa’s first regulated payment blockchain network has garnered significant interest. The company boasts over 15 established partnerships with leading African banks and fintech companies, highlighting the industry’s recognition of the potential benefits associated with decentralized payment infrastructure.

Looking ahead, Zone will leverage the seed funding to solidify its domestic presence and spearhead cross-border payment initiatives. The company’s success in navigating this endeavor will be closely monitored, as it has the potential to reshape the financial services ecosystem in Africa and beyond. Zone’s innovative approach offers a glimpse into the future of payments, potentially fostering greater financial inclusion and propelling Africa’s digital transformation.