Waza, a fintech startup focusing on cross-border B2B payments in emerging markets, has raised $8 million in seed funding, with a mix of $3 million in equity and $5 million in debt. The equity round was led by investors including Y Combinator, Byld Ventures, Norrsken Africa, and Olive Tree Capital. The debt portion, secured from Timon Capital, will be used to pilot trade financing for large enterprise clients. Launched in January 2023, Waza has quickly positioned itself as a key player in Africa's burgeoning fintech landscape. The company’s platform facilitates foreign exchange liquidity and provides a streamlined settlement infrastructure, addressing the complex challenges that African businesses face in global trade. Co-founded by Maxwell Obi, a veteran of the fintech industry with previous stints at Sendwave and Amplify, and Emmanuel Igbodudu, a former senior engineer at Revolut, Waza is focused on capturing a share of the estimated $7 trillion B2B payments market. The company's revenue model is based on foreign exchange spreads and a transaction take rate of 0.75% to 1%. Waza’s rapid growth underscores the significant demand for efficient cross-border payment solutions in Africa, where businesses often struggle with liquidity issues and extended payment cycles. With the fresh infusion of capital, Waza plans to expand its operations beyond Ghana and Nigeria, bringing its services to additional markets across the continent. The company also intends to develop new trade finance products, further solidifying its position as a comprehensive solution for African businesses engaged in global trade. Investors are bullish on Waza's potential. "It's rare to see a startup grow so quickly," said Youcef Oudjidane, Managing Partner at Byld Ventures. Chris Muscarella, Managing Director at Timon Capital, added, "The Waza team has deep experience around cross-border flows, and they are going after one of the bigger opportunities in frontier markets." As Africa continues its integration into global trade, Waza’s innovative approach to B2B payments could play a pivotal role in unlocking the continent’s economic potential.
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