YC-backed Nigerian Fintech startup Cleva, focused on creating a banking platform for African individuals and businesses to receive international payments by opening USD accounts, has raised $1.5 million in the pre-seed round.
The funding round was led by 1984 ventures, other participants include the Raba Partnership, Byld Ventures, FirstCheck Africa, and several angel investors.
Speaking on the funding round, partner at 1984 Ventures, Aaron Michael expressed confidence in Cleva’s team, noting that the startup provides a means for Africans to navigate hyperinflation challenges.
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In his words,
“The team is uniquely qualified to address this given their experience building banking products at Stripe and robust platforms at AWS. The impressive early growth is a testament to the team’s unique capacity to execute across Africa and the U.S.”
CEO and Co-founder of Cleva, Tolu Alabi, said there are still challenges Africans face in receiving international payments for their skills and products, which the startup seeks to address by enabling people to receive international payments seamlessly.
According to the CEO, the startup has initially launched its services to Nigerians, allowing users to open USD accounts, with onboarding requiring a Bank Verification Number (BVN) and a government-issued ID.
In the four months since its launch, the Lagos-based fintech has facilitated the opening of US-based accounts for thousands of Nigerians, processing over $1 million in monthly payments while experiencing month-on-month revenue growth of 100%.
Cleva generates revenue when users swap and exchange their funds in USD accounts for the local currency (in naira for now), and also charges a 0.9% fee on deposits into customers’ USD accounts.
Cleva distinguishes itself from the rest in the following areas,
• Easy to use: Users can open a USD account in minutes without hassle.
• Experts: The startup boasts 10+ years of experience working within the US banking system and knows how to build a great product that users enjoy.
• Affordable: Cleva caps how much it charges for deposits received. Users never get charged more than $20 for any deposit they receive.
• Customer-obsessed: The startup obsesses over customers’ experience and aims to provide them with the best USD banking experience possible.
Looking ahead, on its website, Cleva has some exciting new products that will be launched soon. It disclosed that the products are designed with users’ needs in mind.
Here is an overview of Cleva soon to be launched products
USD card
Users will get to Instantly create a virtual USD card that they can rely on for online payments anytime and any day.
Create professional invoices
Users will be able to send clients customized invoices with a brand name or logo and receive payment directly into their Cleva USD account. Track paid and unpaid invoices and even send out automated reminders.
Send USD across the world
Users will be able to send ACH or domestic wires to bank accounts in the US and send SWIFT internationally at a much better price than the typical bank rate.
The startup is on a mission to build products to simplify banking and payments for next-generation consumers and businesses.