Pioneering a New Era in Web3 Neobanking
Canza Finance, a trailblazing Web3 neobank dedicated to simplifying cross-border payments for African startups, has achieved a significant milestone by successfully closing a strategic funding round, raising an impressive $2.3 million. This injection of funds will be instrumental in acquiring licenses from diverse financial regulators across Africa and laying the foundation for its groundbreaking FX DeFi platform, Baki. This latest round brings Canza's total funding to $5.5 million, following its seed round of $3.27 million last year.
Lead Investors and Strategic Backing
Polychain Capital led this strategic funding round, with noteworthy participation from Protocol Labs, Avalanche’s Blizzard Fund, 99 Capital, Stratified Capital, Hyperithm, and others. The collective support from these investors underscores the strong confidence in Canza's vision to revolutionize cross-border payments for African startups.
Addressing Challenges in African Markets
In many African markets, businesses face challenges with slow and expensive traditional cross-border payment methods. Canza Finance, led by co-founder and CEO Pascal Ntsama, aims to democratize access to financial services traditionally reserved for large corporations. The neobank collaborates with FX agents in various regions to provide faster and more cost-effective solutions for businesses engaged in international transactions.
The Innovative Approach: Introducing Baki
Canza generates revenue by charging a modest 1% fee on processed transactions. The introduction of Baki, the synthetic FX exchange on-chain protocol, is a strategic move to further reduce transaction fees to an impressive 0.2%. Baki facilitates digital currency exchange using stablecoins, offering businesses the ability to navigate forex challenges while maintaining the stability of the dollar.
Driving Financial Inclusion and Infrastructure Development
With a reported weekly processing volume of $2 million and a current client base of 150, Canza Finance is making significant strides in reshaping cross-border payments. Oyedeji Oluwoye, co-founder and CTO, emphasizes the company's commitment to infrastructure development in Africa. He highlights, "Our focus is on expanding infrastructure and obtaining necessary licenses in suitable jurisdictions, driving the growth of our DeFi infrastructure products."
Future Plans: Licensing and Global Expansion
In the upcoming months, Canza aims to secure multiple licenses, including virtual asset custodian, broker-dealer, and exchange services. The ambitious plans include obtaining a Money Services Business (MSB) license in the United States, securing a Foreign Exchange (FX) license in Nigeria, and acquiring three crucial Virtual Asset Licenses from the Financial Service Commission of Mauritius.
Canza Finance's strategic funding not only positions the neobank as a key player in reshaping cross-border payments for African startups but also aligns with its broader mission of fostering financial inclusion and infrastructure development across the continent.
