Yellow Card, a cryptocurrency startup from Nigeria recently raised $1.5 million in its seed funding round. The startup will use the funds to expand its African operations. It will also be using the money to make it easier for customers to buy and sell digital assets.
Who invested in the startup?
Some prominent names in the VC industry like Polychain Capital, Andreessen Horowitz, and the Celo Ecosystem Fund participated in the fundraiser. Yellow Card released a statement suggesting that it intends to
“become the dominant exchange across the continent.”
The company recently added Botswana and South Africa where it added 30,000 new vendors. The firm said,
“Along with the fundraise, Yellow Card is announcing that it will be launching its services in Kenya and Cameroon starting September 1.”
Kenya already has a significant presence of crypto businesses and has the third-largest crypto traffic in peer-to-peer Bitcoin transactions, right behind South Africa. Nigeria also sent a trading volume of $34.4 million in Q2 2020. This makes it the most active country in Africa in terms of the digital assets market.
Yellow Card has onboarded thousands of Nigerian merchants
The startup was founded by Chris Maurice and Justin Poiroux in 2016. Since then, it has added over 35,000 merchants in the country to its platform. The firm also suggests that it has handled transactions worth $35 million on the platform in Nigeria alone. It offers users multiple payment options that include credit card, cash, bank transfers, and cryptocurrencies.
The firm also announced that it has appointed former senior director of payment services at Walmart, Jason Marshall, as its chief operating officer. This will add more strength to the company’s portfolio and help it build its payments products further. The firm originally planned to develop a Bitcoin gift card but in 2018, it pivoted to providing basic financial services for all. This happened after it witnessed the high costs of sending money to Nigeria using their banking system.