Zone, a Nigerian fintech company with an innovative blockchain platform as its core, has made a big step forward by getting $8.5 million in its first funding round as a separate entity.
This seed funding round that greatly exceeded expectations is a clear indicator of the huge potential investors see in Zone’s ability to disrupt the African payments landscape.
Standing on its Own: Zone’s Fresh Start
Zone used to be part of Appzone Group, an already established fintech software provider.
Recognizing the distinctive value proposition of the company’s blockchain network, Appzone took a strategic decision to spin off Zone into a separate company in 2022.
This gave the company more freedom to operate and follow its ambitious growth plans.
A Problem with High Costs: Zone Proposes a Solution
The mission of Zone is to transform cross-border payments in Africa.
Sub-Saharan Africa is currently grappling with the sad reality that it has the world’s highest remittance costs.
Even sending a small amount like $200 can be an unbearable experience financially.
According to a World Bank report, the average cost of sending remittances to the region has risen from 7.2% in the second quarter of 2022 to a mind-blowing 7.9% in the same period of 2023.
The blockchain network of Zone aims at this issue by providing a faster, more secure, and ultimately more affordable way of making and receiving payments across borders.
Gaining Traction: Early Adopters Embrace Zone
Despite being a fairly recent entrant in the fintech industry, Zone has already gained the attention of many industry giants.
More than 15 leading African banks and fintech startups, including Access Bank Plc, Guaranty Trust Bank Plc, and United Bank of Africa, have agreed to use Zone’s innovative blockchain network.
This early adoption is a clear indication of the trust and confidence that established financial institutions place in Zone’s technology.
The Funding Boost: Fueling Growth
The seed funding round amounting to $8.5 million dollars with Flourish Ventures and TLcom Capital as the main leads will arm Zone to drive growth even further.
The fact that big names in the blockchain venture capital industry like Digital Currency Group, Verod-Kepple Africa Ventures and Alter Global took part is an additional proof of the value of Zone’s innovative approach and its capability to reshape the financial landscape in Africa.
Looking Ahead: A Brighter Future for African Payments
By means of this successful funding round, Zone is in a very good position to strengthen its position as a top player in the African fintech space.
The company’s blockchain network may help people and businesses to achieve their goals by enabling quicker, safer and more cost-efficient cross-border transactions.
As Zone grows further and furthers its development, it is the hope that it will unlock a better future for financial inclusion and economic prosperity throughout Africa.