African remittance platform Zazuu has completed a $2 million fundraising round that will enable it to build a stronger remittance offering for diaspora residents, Tech Nova reported on Wednesday (July 13th).
The startup will use the money to scale its platform and improve its product, adding “new features that ensure everyone who sends money to Africa gets the best money transfer experience,” said Zazuu COO Korede Fanilola in the report.
Zazuu has grown from a chatbot informing users of daily prices for Facebook and Telegram groups to an organization approved by the Financial Conduct Authority (FCA) in the UK with users in eight countries in North America and Europe. Nearly 100,000 people have used the current version of Zazuu’s search and comparison service to get the best rates for their money-moving activities, according to the report.
“In 2018, I sent about $3,000 home to Nigeria,” Fanilola said, according to the report. “I thought I had gotten the best deal on this transaction until about two weeks later when someone informed me that I could have saved up to $30 in fees on this transaction if I had used a other supplier. I was livid. We have all had experiences like this where we only discovered in hindsight that we had lost more than we should have on transactions with us simply by choosing the right provider.
The overall cost of moving money across borders averages around 6.09% of the transaction value and can be as high as 22% for money sent to African countries, the report says, citing the World Bank. The lack of transparency among remittance providers is the main challenge.
The company’s goal is to help customers by providing “better access to financial instruments like credit both at home and abroad in the future,” Zazuu CEO Kay Akinwunmi said. , in the report. “The goal is to build totally unbiased financial well-being for African immigrants around the world.”
Zazuu’s funding round saw participation from Launch Africa, Founders Factory Africa, Hoaq Club, Tinie Tempah, Jason Njoku, CEO IrokoTV, Babs Ogundeyi, CEO Kuda Bank and other angel investors, according to the report.
Meanwhile, Nigeria-based FinTech Moni is trying to fill the funding gap for small business owners in Africa with a community lending solution.
Read more: Community loans fill the funding hole for mobile money agents in Africa
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