Stablecoin and cryptocurrency payment infrastructure company, Ezeebit, has closed a $2.05 million seed funding round to accelerate product development and merchant adoption across Africa.
The start-up has named South Africa, Kenya, and Nigeria as regions of focus, the capital will used to also expand strategic partnerships with banks, payment service providers, and telcos.
According to a statement, the round was led by Raba Partnership, an earlier backer of Flutterwave, Stitch, Fuse, and BVNK and joined by Founder Collective, which was an early backer of Uber, WHOOP, Airtable, and The Trade Desk. The round also includes strategic angels.
The cash injection comes as the continent is experiencing a convergence of structural tailwinds.
These include lingering inflation in some countries fuelling the demand for stablecoins, negligible credit card penetration, with just 4% of adults in Sub-Saharan Africa holding credit cards, and mobile money increasing the comfort of hundreds of millions to pay digitally via QR codes.
In addition, smartphone adoption will approach 90% by 2030, expanding the addressable market.
Ezeebit enables merchants to accept crypto payments with instant stablecoin settlement and next-business-day local fiat payouts.
Furthermore, the firm’s merchants experience fees of 1% or less, amounting to a 68% saving compared to traditional card payments, along with instant stablecoin settlement and next-business-day local fiat payouts, eliminating volatility risk, it said.
Amanda Herson, general partner at Founder Collective, believes that the Cape Town-based startup simplifies cryptocurrency through its infrastructure in areas where half of the population is unbanked.
Daniel Katz, CEO and co-founder of Ezeebit, said: “African merchants are tied to slow, expensive payment rails, while consumers increasingly hold crypto for remittances and savings but lack a safe way to spend it.”
He went on: “We bridge this gap by connecting decentralised and traditional finance with a compliant stablecoin settlement layer. This funding empowers us to provide that vital infrastructure, allowing millions to participate fully in the global digital economy.”
David Frankel, co-founder and managing partner at Founder Collective added: “What’s happening in Africa is extraordinary. Millions of people hold crypto but can’t spend it; merchants need faster, cheaper rails, but legacy systems keep them locked out.
"Ezeebit is building the bridge. This team has an uncommon gift for integrating modern financial technology with a grounded understanding of the dynamics shaping the markets they serve.”
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