Waza, a Nigerian Y Combinator-backed B2B payment and liquidity platform has secured $8 million in equity and debt funding to expand into new markets.
This significant capital injection is expected to bolster Waza’s efforts in expanding its operations and enhancing its platform, which is designed to streamline business-to-business transactions across Africa.
The funding round includes a $3 million seed equity round from investors such as Y Combinator, Norrsken Africa, Heirloom VC, Byld Ventures, Plug and Play Tech Center, and Olive Tree Capital, along with $5 million in debt funding from Timon Capital to pilot trade financing for large enterprise clients.
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Speaking on the fund raised, CEO and Co-founder of Waza Maxwell Obi expressed excitement, stating that this development brings the startup closer to transforming B2B payments and access to liquidity for businesses across the African continent.
“By providing a more efficient settlement infrastructure, we are bridging the foreign exchange and liquidity gap and empowering African businesses to access more global trade opportunities that will drive economic growth and development in the markets we serve”, he added.
With emerging economies facing trade deficits which have caused demand for dollars, this challenge is majorly felt in Africa due to a shortage of tech solutions addressing the liquidity needs of large enterprises and multinationals. Waza which began operations in January 2023, aims to solve this challenge and make its mark in the global payments market starting with Africa. The startup claims to make it easier for African businesses and traders to manage and pay their suppliers globally.
In its first month, Waza’s total payment volume amounted to $280,000, co-founder and CEO Maxwell Obi told TechCrunch. In May, the fintech processed up to $70 million in monthly payment volume, translating to $700 million in annualized transaction volume, he added. The CEO also disclosed that Waza’s transaction volumes and revenues, which come from FX spread and a 0.75% to 1% take rate, are growing by an average of 20% monthly.
The startup facilitates business payments and liquidity management across six continents for hundreds of clients, cutting across three categories with different needs. It currently aims to target a $7 trillion market with the potential to generate $250 billion in revenue.
According to CEO Obi, Waza’s competitive edge lies in its ability to offer both affordability and speed in settlements, which are crucial factors for businesses engaged in international trade.
He said,
“Cross-border payments in the context of trade is for businesses to pay their suppliers fast and expect the product to come quickly as exchange rate plays a part in how much they make. So our value proposition has always been on affordability and speed of settlement. We also have much more control of our payment infrastructure versus the competition out there. It’s why we’re able to be a cheaper option out there in the market, and that’s how we’ve been able to corner our customers so far”.
The emergence of Waza marks an important step in the evolution of the B2B sector, as the platform seeks to address key challenges in business operations and drive efficiency in the African marketplace.