In an era where digital communication is transforming lives across borders, Talk360, a South African and Dutch-founded calling app, is striving to stand out by connecting families and friends globally through affordable international calls. The company, co-founded by Hans Osnabrugge and Dean Hiine, recently raised $1.4 million (R25 million) in a Pre-Series A funding round led by long-time investor Havaic, marking a significant milestone in its growth trajectory.
Founded in 2015, Talk360 operates in over 190 countries, providing a vital service for migrant communities seeking affordable and reliable communication. Unlike many competitors, the Talk360 app only requires the person initiating the calls to have internet connectivity, allowing users to reach both landlines and mobile phones without needing both parties online.
The latest capital injection is set to fuel Talk360’s ambitious expansion plans, including its goal of connecting seven million people by 2025. Osnabrugge, Talk360’s CEO, remarked, “We are incredibly proud of the progress we’ve made, growing from 2.3 million users to over four million in 2023. This funding will help us continue to serve African migrant communities, particularly in South Africa, and help them stay connected with loved ones back home.”
Expanding Reach and Payment Capabilities
In addition to expanding its user base, Talk360 has been making strides in solving one of the continent’s most persistent issues — fragmented payment systems. After raising $7 million in 2022 across two seed funding rounds, the company began developing an in-house payments platform designed to streamline transactions for consumers in Africa. Payment failure rates are a common barrier for merchants and consumers across the continent, a problem Talk360’s new platform aims to address.
Talk360 has seen notable success with its in-house payment platform, which integrates various local currencies and payment methods across Africa. The platform boasts over one million cash points of sale, contributing to a 25% increase in payment conversion rates. Encouraged by these results, the company is now planning to open this payments solution to external merchants, with a potential launch before Christmas 2024.
“Our payment platform has laid a strong foundation in addressing the payment hurdles that African consumers face. Opening it up to external businesses will enable them to benefit from this more efficient system, improving transaction reliability and reducing failed payments,” said Osnabrugge.
A Focus on Localisation and Community Engagement
Talk360 ’s mission extends beyond just facilitating cross-border calls; it aims to provide culturally and linguistically tailored solutions. The company plans to use part of the new funding to localise the app into additional African languages, with Amharic and Portuguese expected to be supported in upcoming updates. “We’ve seen a significant demand from Ethiopian users, and by localising into Amharic, we can better serve their needs and expand our reach within other African communities,” said Hiine, Talk360’s Managing Director for Africa.
The commitment to localisation goes hand-in-hand with Talk360’s strategy of building trust in underserved communities. “Our goal has always been to resonate with the unique needs of our customers. This new round of funding enables us to continue creating solutions that add local value and enhance the overall user experience,” Hiine added.
Another key element of Talk360’s growth plan is establishing partnerships with major players in remittance, retail, and brand sectors. These collaborations aim to bolster the company’s market presence and drive user adoption by tapping into existing networks that serve African communities both locally and abroad. The company’s ambition is to not only expand its app’s functionality but also its footprint across different industries.
A Valuation Anchored in Growth Potential
Despite the economic headwinds many tech companies face, Talk360’s valuation remains strong. The latest funding round was based on the same $30 million+ valuation the company achieved in 2022. The consistency in valuation highlights investor confidence in the company’s business model, which combines a robust user growth trajectory with a promising fintech angle through its payments platform.
As Talk360 continues to evolve, it aims to cement its position as a vital communication tool for African migrant communities and a fintech solution for businesses across the continent. With plans to connect millions more and streamline payments for African consumers, Talk360’s journey is a testament to the growing demand for accessible, affordable tech solutions across emerging markets.
Users can download Talk360 from the App Store, Google Playstore, or Huawei AppGallery as the company looks to deepen its presence both within Africa and globally.