Cryptocurrency, News

Nigerian Fintech Company Raises $3.2 Million To Expand Its Payment Platform

Canza, a Nigerian finance firm, has secured a substantial investment round from investors. Canza will utilize the additional capital to expand its crypto-based international payment system. According to reports, the substantial amount totaled roughly $3.2 million.

International Venture Capitalists Invest Funds In Canza

According to a Forbes story, a neobank in Nigeria raised around $3.2 million. Canza Finance was funded by a slew of prominent venture capital companies and giants in the blockchain sector. The investors include Hashkey Capital, Consensys, Boxing Ventures, Dominance Ventures, and Protocol Labs. Fenbushi Capital, a Chinese firm, allegedly spearheaded the investment round.

Canza is a contemporary digital bank which uses blockchain technology to serve people and industries throughout Africa. The firm enables international payments and treasury control to connect domestic businesses to world markets.

The co-founders, Oyedeji Oluwole and Pascal Ntsama stated that the company’s international payments business presently accounts for the lion’s share of the company’s activities. According to CEO Ntsana, the firm processes roughly $1 million in transactions every week.

Additionally, Ntsana stated that the corporation has settlement locations in China, the US, Canada, Turkey, and the UAE. Canza’s current round of funding will be used to expand its footprint in more markets, both inside Africa and overseas.

By concentrating on international settlement and management of treasury, Canza hopes to address part of the most significant difficulties confronting Nigerian organizations doing business abroad. Additionally, the business anticipates launching its treasury software before 2022 runs out.

Africa’s Growing IT Scene May Soon Embrace Crypto Tech

While Nigeria is Africa’s strongest economy by nominal GDP, local firms face a slew of obstacles regarding foreign transactions. Central bank regulations have been tighter in recent years, making it harder for businesses to obtain the foreign capital and liquidity they require to develop.

However, the crypto industry’s evolution has demonstrated that decentralized tech can alleviate common barriers, notably those linked with conventional fiat-denominated international payments.

Also, by providing businesses in Nigeria and Africa with a reliable payment infrastructure that supports digital currencies such as BTC and ETH, it can catalyze aggressive development in the digital economy of Africa. Moreover, stablecoins such as UST and USDT provide a less stable option for businesses looking to take on lesser financial risks.

However, Africa’s burgeoning consumer sector has prompted the growth of more companies focusing on the development of standard payment systems and facilities. According to NairaMetrics, technology startups raised the largest chunk of approximately $1.6 billion generated by Nigerian enterprises in 2021.

While most of these companies have not yet used blockchain technology, fast advancement in the international payment sector implies that African enterprises may exploit digital currencies and assets in years to come.

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