Nigerian startup Zone, a fast-growing payment infrastructure company, has raised US$8.5 million in an oversubscribed seed funding round to help it scale its blockchain-based decentralised payment infrastructure for financial services providers across the continent and beyond.
Zone has developed a layer-one bockchain network that digitises fiat payments and enables the transition to digital currencies while connecting previously excluded financial institutions into an all-inclusive payment ecosystem.
By harnessing the power of blockchain, Zone’s blockchain network delivers reliable, frictionless and universally interoperable payment experiences at scale to financial service providers and their customers. Zone has a unique position as Africa’s first regulated blockchain network for payments and has already signed up over 15 of Africa’s largest banks and fintech companies.
The company has now raised US$8.5 million in seed funding in a round led by Flourish Ventures and TLcom Capital, and also featuring Digital Currency Group (DCG), Verod-Kepple Africa Ventures (VKAV), Alter Global, and Endeavor Catalyst.
The infusion of capital will enable Zone to further expand the coverage of its network domestically and connect more banks and financial services companies. A significant portion of the proceeds will also be allocated to conducting a comprehensive pilot programme to test the company’s cross-border capabilities, scheduled for 2025.
A key priority for Zone is to ensure that it is well-prepared to extend its footprint across Africa in order to support Intra-African and international payments which will bring the company closer to its vision of becoming a global payment network.
“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,” said Obi Emetarom, CEO and co-founder of Zone. “As we step into this new phase at Zone, we are re-energised and our commitment to transforming Africa’s payment infrastructure is renewed.”
Emetarom said Zone will now accelerate its mission to connect every monetary store of value and enable real-time payments within and across geographical borders.
“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,” said Ameya Upadhyay, partner at Flourish Ventures.
“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.”
