Accrue, a Nigerian cross-border infrastructure platform, has closed a $1.58 million seed funding round to accelerate its expansion and enhance its payment solutions across Africa. The round was led by Lattice Fund, a venture capital firm focused on early-stage technology startups in Africa, with participation from Maven 11, Lava, Kraynos Capital, Distributed Capital, and a group of strategic angel investors.
The funding will empower Accrue to broaden its payment infrastructure footprint across the continent, refine its product offerings, and bolster its team with skilled professionals.
Founded in 2021 by Clinton Mbah, Adesuwa Omoruyi, and Zino Asamaige, Accrue’s initial mission was to simplify cryptocurrency and stock investments for retail users. However, in response to the cryptocurrency market downturn in 2022, the company recognized a growing demand for efficient cross-border payment solutions within Africa. This strategic shift led to the development of Cashramp, a proprietary cross-border payment infrastructure that empowers users to seamlessly send money across African countries. Through Accrue, users can transfer funds to any bank account, mobile money wallet, or MPesa within five minutes, ensuring swift and reliable transactions.
Accrue’s pivot towards cross-border payments has yielded remarkable success. Over the past three years, the platform has attracted over 200,000 users, facilitating secure and swift financial transactions across the continent. Cashramp has transformed from a supplementary feature into the company’s primary revenue driver. This strategic shift culminated in Accrue achieving profitability by mid-2023, solidifying the effectiveness of its new direction and the substantial demand for its services.
Lattice Fund, the lead investor in the seed round, highlighted Accrue’s potential to revolutionize cross-border payments in Africa. “We are impressed by Accrue’s ability to identify a critical need in the African financial landscape and develop a scalable solution to address it,” said a spokesperson from Lattice Fund. “The company’s agent network model, inspired by the success stories of MPesa and Moniepoint, has the potential to provide efficient and accessible cross-border payment services to a vast underbanked population.”
Accrue’s agent network model mirrors the approach of established mobile money platforms like MPesa and Moniepoint, which have played a transformative role in financial inclusion across Africa. This proven model ensures smooth transaction processing, particularly in regions with limited traditional banking infrastructure. Accrue asserts that its system facilitates transaction completion within five minutes, offering significant convenience to its users.
Today, Accrue boasts over 200,000 users across eight African countries: Nigeria, Ghana, Kenya, South Africa, Cameroon, Uganda, Zambia, and Malawi. The company generates revenue through various channels, including transaction fees associated with asset sales or investments. For example, users incur a 1.5% penalty for prematurely terminating auto-investment plans. Additionally, similar to many fintech companies, Accrue earns revenue through foreign exchange spreads on its transactions.
While Accrue has maintained its cryptocurrency investment feature, the company announced the discontinuation of stock trading on its platform in 2024. This decision streamlines the company’s focus on its core offerings, which now encompass enabling users to save in US dollars and make online payments using virtual cards issued by Accrue.
Cross-border payments in Africa remain a persistent challenge, often plagued by high costs, lengthy processing times, and limited accessibility. Fintech startups like Accrue are emerging to tackle these issues by leveraging stablecoins — cryptocurrencies pegged to stable assets like the US dollar — to facilitate faster and more reliable transactions. This approach bypasses the inefficiencies inherent in traditional banking systems while providing a scalable solution for cross-border transfers.
As Accrue expands its user base and refines its offerings, it positions itself as a prominent player within the African fintech landscape, addressing critical financial requirements in a rapidly evolving market. The company’s strategic shift towards cross-border payments and its focus on leveraging innovative technologies position it to play a crucial role in shaping the future of financial services in Africa.