African fintech Juicyway Secures $3M Pre-Seed Round lead by P1 Ventures – Fintech News Saudi Arabia

African fintech startup Juicyway has officially launched out of stealth mode, revealing its impressive track record of processing over $1 billion in transaction volume across 25,000 transactions for 4,000 users over the past three years. The company, which leverages stablecoin technology for fast and affordable cross-border payments, announced a $3 million pre-seed funding round led by P1 Ventures, with participation from Ventures Platform, Future Africa, MAGIC Fund, Microtraction, and notable angel investors such as Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo.

Organic Growth and Strategic Acquisitions

Operating in stealth, Juicyway grew organically through word-of-mouth referrals and by acquiring a similar business that brought thousands of customers, including high-profile companies such as Andela, where one of Juicyway’s founders previously served as an executive. The fintech’s notable clientele now includes corporates like Bolt and IHS, fintech firms such as Piggyvest, Bamboo, and Afriex, and the energy and logistics giant Mocoh SA.

Despite its quiet presence, Juicyway has built a solid reputation by addressing liquidity challenges faced by African businesses and remittance operators. For instance, remittance businesses in the U.S. can use Juicyway’s platform to inject liquidity and set competitive exchange rates, streamlining the process of converting dollars to Nigerian naira and distributing the converted funds to their customers.

Revolutionizing Cross-Border Payments with Stablecoin Technology

Juicyway’s innovative approach centers on stablecoin technology, which allows users to bypass traditional banking systems. By leveraging cash deposits in U.S. bank accounts to purchase stablecoins like USDC or USDT, the platform enables faster, cheaper, and more flexible transactions. These stablecoins are transferred to users’ digital wallets, where they can either hold the cryptocurrency or convert it into local currencies.

The fintech’s co-founders, Justin Ziegler and Ife Johnson, previously held leadership roles at Andela and Bamboo, where they encountered the complexities of cross-border money transfers. These challenges inspired them to develop Juicyway, aiming to “increase African participation in the global economy,” according to Johnson, the company’s CEO.

Supporting Liquidity and Compliance

Juicyway addresses Africa’s liquidity gaps in intra-African currency pairs by providing businesses with access to liquidity pools for local and international payments through its web and mobile apps, as well as APIs. The platform supports currencies like Nigeria’s naira, USD, GBP, and CAD, with real-time rates fostering competition and transparency.

To ensure compliance and mitigate risks, Juicyway collaborates with partners like Access Bank in Nigeria, Lead Bank in the U.S., and Bridge, a stablecoin infrastructure startup recently acquired by Stripe. Additionally, the fintech has strengthened its compliance team by hiring Joshua Wasserman, a former FDIC bank examiner, and implementing advanced KYC, KYB, and KYT processes in partnership with Sumsub.

Revenue Model and Future Plans

Juicyway generates revenue through processing and payment fees, with take rates ranging from 0.2% to 10%, and plans to expand its earnings by earning interest on customer balances. The startup is also diversifying its banking and payment processing partners to mitigate risks and enhance operational resilience.

The company’s long-term vision involves acquiring money transmitter licenses across more African countries to facilitate seamless currency conversions for businesses operating on the continent. Juicyway’s goal is to become the go-to platform for Africans and global businesses to easily convert between African and international currencies.

A Growing Wave of Stablecoin-Powered Startups

Juicyway joins a burgeoning wave of African startups utilizing stablecoin technology to transform cross-border payments. Competitors like Yellow Card, which recently raised $33 million, and YC-backed Waza and Verto, are also vying for market share in this space. However, Juicyway sets itself apart by focusing on both the supply and demand sides of stablecoin orchestration, driving its mission to “heavily product- and compliance-led” innovation.

Conclusion

With its launch out of stealth and a significant $3 million pre-seed round, Juicyway is poised to redefine cross-border payments in Africa. By leveraging stablecoin technology and fostering partnerships with key stakeholders, the fintech aims to empower African businesses and individuals to participate more freely in the global economy.

“Our single and biggest North Star is increasing the access of Africans to the global economy, and it shapes how we make decisions,” said Johnson. “We are here to make global financial participation as seamless and accessible as possible.”

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