Nigerian blockchain funds startup Bitmama closes $2M pre-seed because it scales to new markets • TechCrunch

Africa is the world’s third fastest-growing crypto market, with crypto adoption increasing by more than 1,200% over the past two years. Nations reminiscent of Nigeria, Kenya and South Africa are majorly accountable for skyrocketing adoption charges as residents attempt to hedge towards foreign money devaluation and construct wealth.

Regardless of African governments’ inconsistent stance on cryptocurrencies, these nations home a lot of the continent’s crypto and blockchain startups. Within the newest growth, one such firm, Bitmama, has raised a pre-seed extension of $1.65 million, including to the $350,000 it obtained final October, thus, closing the spherical at $2 million.

Africa-focused enterprise capital companies Unicorn Development Capital and Launch Africa led the funding in Bitmama. Others embody current and new traders reminiscent of Adaverse, Flori Ventures, Tekedia Capital, GreenHouse Capital, ODBA, Five35 Ventures, Chrysalis Capital, Enrich Africa, Thrive Africa, Angellist Ventures and angel traders, together with Rene Reinsberg, Marek Olszewski and Honey Ogundeyi.

The U.S.- and Nigeria-based firm, which has constructed a distributed distant staff throughout Nigeria, Ghana and Kenya, says it’s working to democratize Africa’s extremely fragmented fee system by leveraging blockchain-based options.

Chief government officer Ruth Iselema based the Africa-focused blockchain funds startup in 2019. Adam Umar is the corporate’s CTO, whereas Akinbola Asalu is the COO. Based on the executives, Bitmama began as a WhatsApp group the place members realized about crypto, significantly bitcoin, and made transactions. Subsequently, they constructed a crypto alternate platform and allowed these customers to entry digital belongings formally and discover different use circumstances, together with shopping for, promoting and swapping crypto and peer-to-peer transactions. Extra lately, the corporate launched Changera, a social fee resolution permitting clients to make use of stablecoins to facilitate remittances and worldwide funds on Netflix and Amazon by way of digital playing cards.

“We began Bitmama to make it simple for anybody throughout the African continent to purchase and promote cryptocurrency. However as time handed, we noticed a few use circumstances we might make use of this know-how to unravel,” CEO Iselema instructed TechCrunch on a name. “Many individuals needed to make transactions asides from shopping for and promoting of crypto, so we constructed stuff that might additionally allow them to purchase native and worldwide airtime and knowledge. Then, as a result of native financial institution card limitations of $20 month-to-month spend, we supplied digital greenback playing cards for Nigerians to make worldwide purchases.”

The corporate says its Changera digital crypto debit playing cards, funded with stablecoins, have over $10,000 in month-to-month spending limits and “can work wherever on this planet for on-line transactions.” Based on the CEO, Bitmama launched Changera on the intersection of blockchain funds and life-style, primarily concentrating on non-crypto-savvy people who find themselves extra comfy utilizing platforms with primary UI interfaces and fewer crypto jargon to speak.

Earlier this yr, Bitmama had fewer than 20,000 customers throughout each platforms. That quantity has grown to greater than 70,000, famous Iselema, including that each merchandise, Bitmama alternate and Changera, have seen huge uptake with minimal advertising. Revenues come from margins on the transactions its customers carry out on the platform.

African blockchain startups raised $91 million within the first quarter of 2022 alone in comparison with $127 million they obtained from traders all through 2021. Whereas new upstarts within the web3 house reminiscent of MARA, Nestcoin and Jambo have grabbed the headlines with new however unproven enterprise fashions, collectively, exchanges and remittance platforms stay essentially the most backed within the house, for instance, Afriex, Yellow Card and VALR. Different notable names embody YC-backed Buycoins, Quidax and Busha.

Although Bitmama isn’t among the many continent’s most funded blockchain platforms, Iselema boldly claims it is likely one of the most revolutionary blockchain firms round — and the brand new funding will enable it to be extra tenacious on that entrance.

“One factor which is the spine of Bitmama is that we’re very revolutionary. Since we got here into the ecosystem, we’ve been doing many issues the place we’ve been the primary,” she mentioned. “For example, we had been the primary to launch QR codes for offline onboarding. Even once we launched the crypto playing cards, we had been the primary to try this. And we’ve a few revolutionary merchandise we’re bringing out that would be the first out there, and we need to preserve that momentum.”

Presently, Bitmama is engaged on a B2B play the place by way of APIs, it could possibly help companies in varied industries that need to provide crypto-based providers to their customers with out constructing from scratch. The executives say Bitmama is testing this characteristic with some purchasers in beta.

The blockchain firm will use the pre-seed to develop its operational presence, strengthen its staff, consolidate its product choices and plot market penetration throughout Africa whereas quickly scaling new use circumstances for cryptocurrency throughout the continent, it mentioned in a press release.

Managing normal companion at pan-African fund Launch Africa mentioned he sees his agency’s partnership with Bitmama as a approach to enable Africans to commerce and handle cryptocurrencies and digital belongings conveniently and universally. “That is one thing that we particularly worth in our fund and what Bitmama specifically delivers.”