HUB2, a pioneering fintech from Ivory Coast, has raised $8.5 million in Series A funding to solidify its position as the “Stripe for Francophone Africa.” The funding round was led by TLcom Capital, with participation from FMO, Enza Capital, Bpifrance, and Eric Barbier, founder of Thunes.
Founded in 2019 by telecom veteran Ashley Gauzere, HUB2 addresses the unique challenges of Francophone Africa’s fragmented financial ecosystem. Operating in an economically diverse but financially siloed region, HUB2 provides a unified API for seamless payment processing. The startup collaborates with 55 neobanks, payment companies, and remittance and cryptocurrency providers, including names like Julaya, Onafriq, NALA, and CinetPay.
Addressing Payment Fragmentation
Gauzere’s vision for HUB2 was inspired by Stripe’s model of simplifying complex payment operations. “The one issue I wanted to solve in French-speaking Africa was creating high-quality, interoperable payment solutions to unify payments across the region,” he said.
HUB2’s platform integrates with mobile money operators like Wave, Orange, MTN, Moov, Free, and T-Money, enabling fintechs to collect payments via mobile money, bank transfers, card payments, and cryptocurrency. This approach aims to tackle the region’s interoperability challenges, low banking penetration, and last-mile connectivity issues.
Pivots to Success
Initially targeting independent e-commerce merchants, HUB2 shifted its focus to large corporates transitioning to digital payments before eventually pivoting to serve fintechs exclusively. Today, fintechs account for 98% of HUB2’s transaction volumes.
The company is on track to process €1 billion in transaction volume (TPV) in 2024, a sharp increase from €70 million in 2022, driven by 15% month-over-month growth in TPV and revenue.
Future Plans and Expansion
Co-CEO Jean-Rémi Kouchakji emphasized the importance of focus at this stage. “Offering everything with the right licenses, perfect compliance, and technical excellence requires a horizontal play,” he said.
HUB2 plans to expand its payment infrastructure by rolling out cross-border payment solutions, stablecoin-based remittance services, and enhanced card payment capabilities via CyberSource, Visa’s payment platform. Currently operating in six countries — Senegal, Burkina Faso, Benin, Togo, Ivory Coast, and Cameroon — the startup aims to achieve full regional coverage within two years.
A Path to Empower SMEs
While fintechs remain the primary focus, HUB2 recognizes the potential of small and medium enterprises (SMEs), which make up 90% of businesses in Africa. The company envisions serving this segment in the future, aligning with the strategies of competitors like Paystack and Flutterwave.
HUB2’s growth has been supported by a 35-person team operating across three offices in France, Ivory Coast, and Mauritius.
Eloho Omame, partner at TLcom Capital, expressed confidence in HUB2’s trajectory: “HUB2’s achievements in Francophone Africa, combined with TLcom’s track record in Anglophone markets, will make digital payments more accessible across the continent.”
HUB2’s ambitious plans signal a transformative leap for payments in Francophone Africa, addressing the region’s fragmented financial landscape with innovative, interoperable solutions.
