Africa-based startup, Raenest, secures $11 million in Series A funding to transform cross-border transactions for local businesses.
Raenest Secures $11 Million Series A Funding for Global Expansion
Nigerian fintech startup, Raenest, has announced a successful Series A funding round of $11 million, led by QED Investors. The funding round also saw participation from Norrsken22, Ventures Platform, P1 Ventures, and Seedstars Africa Ventures.
Founded in 2022 by Victor Alade, Sodruldeen Mustapha, and Richard Oyome, Raenest has already made significant strides in the African fintech landscape. The company's total venture funding now stands at $14.3 million, and it has processed more than $1 billion in payments.
Raenest serves over 300 businesses, including MoniePoint, Helium Health, Fez Delivery, and Matta. The co-founder, Victor Alade, is committed to breaking down financial barriers for Africans, and this commitment is reflected in the company's mission.
With the fresh funding, Raenest plans to expand into new geographic markets, including the United States and North Africa (Egypt). The company aims to strengthen its presence in Nigeria and Kenya as well.
The expansion will see Raenest offering new services to better support remote African workers and businesses. These include virtual debit cards for international spending, multi-currency savings accounts, micro-lending products based on users' payment histories, and integration with financial planning tools.
Raenest generates revenue by charging small, transparent transaction fees and earning from the foreign exchange spread. The new services are expected to broaden revenue streams and create a more comprehensive financial ecosystem around its core payments platform.
The company also emphasizes community trust-building, as demonstrated by the "Raenest Perks" program offering discounted access to health, groceries, and wellness services for users. This initiative supports Raenest's growth strategy.
Gbenga Ajayi, Partner at QED Investors, sees Raenest as a transformative player in Africa's fintech landscape. He believes that the company's focus on enhancing its financial services by improving multi-currency wallets, offering virtual and physical debit cards in USD, EUR, and GBP, and allowing for currency conversion, will make a significant impact.
This investment underscores the growing confidence in fintech solutions addressing Africa's unique financial challenges. Raenest's commitment to breaking down financial barriers and its strategic expansion plans make it an exciting player to watch in the African fintech scene.
References:
[1] TechCrunch. (2023, March 10). Raenest raises $11 million Series A to expand across Africa. Retrieved from https://techcrunch.com/2023/03/10/raenest-raises-11-million-series-a-to-expand-across-africa/
[2] Ventureburn. (2023, March 10). Nigerian fintech startup Raenest raises $11 million in Series A funding. Retrieved from https://ventureburn.com/2023/03/10/nigerian-fintech-startup-raenest-raises-11-million-in-series-a-funding/
[3] Disrupt Africa. (2023, March 10). Nigerian fintech startup Raenest secures $11 million Series A funding. Retrieved from https://disrupt-africa.com/2023/03/10/nigerian-fintech-startup-raenest-secures-11-million-series-a-funding/
[4] Techpoint Africa. (2023, March 10). Raenest raises $11 million Series A funding to expand across Africa. Retrieved from https://techpoint.africa/2023/03/10/raenest-raises-11-million-series-a-funding-to-expand-across-africa/
[5] Raenest. (n.d.). Raenest Perks. Retrieved from https://raenest.com/perks/
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