Quick Read: Accrue, a Nigerian fintech startup, has successfully raised $1.58 million in seed funding, led by Lattice Fund. The funding will support the growth of its payment infrastructure, team expansion, and product development. Additional investors in this round include Kraynos Capital, Distributed Capital, Lava, and Maven 11.
From Crypto to Cross-Border Payments
Founded in 2021 by former Helicarrier employees Zino Asamaige, Adesuwa Omoruyi, and Clinton Mbah, Accrue initially launched as a platform to simplify crypto investments for everyday consumers.
The startup gained traction during the crypto boom but faced challenges as interest and investment in cryptocurrencies waned during the 2022 market downturn. In response, the team pivoted its focus to solving a critical financial issue in Africa: cross-border payments.
Leveraging Innovative Models for Faster Payments
Accrue’s cross-border payment solution uses an agent network model, inspired by the success of platforms like MPESA and Moniepoint. This model has proven effective in regions with limited access to traditional banking, enabling transactions to be completed in under five minutes.
Currently, the startup serves over 200,000 users across eight African countries, including Nigeria, Ghana, Kenya, South Africa, Cameroon, Uganda, Zambia, and Malawi.
Diverse Revenue Streams
Accrue generates revenue through transaction fees and foreign exchange spreads. For example, users pay a 1.5% penalty fee if they stop auto-investment plans before maturity. Despite its shift toward cross-border payments, the platform retains its crypto investment feature while discontinuing stock trading in 2024 to focus on core offerings.
Simplifying Cross-Border Payments with Stablecoins
Cross-border payments remain a significant challenge in Africa, plagued by high costs, delays, and limited accessibility. Accrue addresses these issues by leveraging stablecoins — cryptocurrencies pegged to stable assets like the US dollar — to facilitate faster and more reliable transactions. This approach bypasses traditional banking inefficiencies, offering a scalable and user-friendly solution.
Positioning for Growth
With its innovative approach and user-centric solutions, Accrue is poised to become a key player in the African fintech ecosystem. By addressing critical financial challenges, the startup is helping to drive financial inclusion and reshape the way Africans manage and transfer money.
