Waza, a startup specializing in B2B payments and liquidity solutions for businesses in emerging markets, has successfully raised $8 million through a combination of equity and debt financing.
Expansion and New Offerings
The capital injection is intended to fuel the company’s expansion beyond its current footprint in Ghana and Nigeria, as well as to launch new trade finance products.
Investment Details
The development includes a $3 million seed equity investment from a consortium of investors, featuring prominent names such as Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, and Olive Tree Capital. Additionally, Waza has secured $5 million in debt funding from Timon Capital, which will be utilized to initiate trade financing services tailored for large corporate clients.
Founders’ Vision
Maxwell Obi, the CEO and co-founder of Waza, views this financial milestone as a significant step towards revolutionizing B2B payments and improving liquidity access for businesses throughout Africa.
Expansion and Achievements
Waza, co-founded by Maxwell Obi and Emmanuel Igbodudu, commenced operations discreetly in January 2023 as part of Y Combinator’s Winter 23 cohort. Since then, the startup has quickly established itself as a key player in the industry, serving hundreds of businesses, processing an impressive annualized payment volume of over $700 million across six continents, and experiencing a robust monthly growth rate of 20%.
Profitability and Momentum
According to Waza, the company achieved profitability in the fourth quarter of 2023, and it has successfully sustained this status into 2024, underscoring the startup’s robust business model and the efficacy of its operational strategies.
Prior Fundraising
Earlier in its growth journey, Waza secured a substantial $1.2 million in pre-seed funding in January 2023, earmarked for the development of payment infrastructure tailored to the unique needs of emerging markets. This initial injection of capital was a foundational step for Waza, enabling the company to lay the groundwork for its subsequent expansion and the introduction of innovative trade finance solutions.
The timing of Waza’s expansion coincides with a growing need for efficient cross-border payment systems, spurred by an increase in remittance flows and international commerce. Projections from the Bank of England suggest that the global market for cross-border payments could surge to over $250 trillion by the year 2027. This signifies the potential for substantial growth and impact within the market for B2B payments and liquidity solutions in emerging economies.