Fintech startup Capi Money has secured €17.2 million ($17.9 million) in a Series A funding round to scale its international payments platform, which aims to streamline global trade for small and medium-sized enterprises (SMEs) in emerging markets, including Africa, Latin America, and China. The investment round was led by venture capital firm Creandum, with participation from Janngo.africa and existing investors such as Y Combinator, Firstminute Capital, 4Cities, The Raba Partnership, Kara Investments, Algorithmic Strategies, Rebel Fund, Maiora, and Pioneer Fund.
Capi Money, founded in 2023 by Mitch Riley, Scott Liddle, and Tom Watson, focuses on solving a critical pain point for SMEs: the slow and expensive process of paying international suppliers. The company’s platform enables businesses to settle invoices of up to $1 million within 48 hours, bypassing intermediaries and reducing high foreign exchange fees, which can reach 10% in many African markets.
“For millions of small businesses across developing economies, paying international suppliers remains a significant challenge. Capi Money is addressing this issue with a solution that ensures payments are reliable, fast, and free of unnecessary middlemen,” Creandum stated in a release.
The challenges facing SMEs in Africa and other emerging markets when making cross-border payments are well documented. Delayed bank transactions, currency conversion costs, and regulatory red tape have made international trade cumbersome, limiting business growth. While consumer remittances have benefitted from digital innovation, business payments remain largely inefficient.
Having previously held leadership positions at Taptap Send, a cross-border remittance platform operating across Africa, Asia, and Latin America, Riley and Liddle recognized a gap in the market for SME payments. Watson, a fintech entrepreneur with a background in building and scaling digital platforms, brings the technical expertise necessary to expand Capi Money’s reach.
Since participating in Y Combinator’s S23 batch just over a year ago, the company has expanded into four African countries, grown its customer base, and achieved multi-million-dollar revenue — all with a lean team of just 13 employees.
Investors see significant potential in Capi Money’s business model. “The company has already demonstrated strong traction, achieving impressive revenue milestones in a short period with a small but highly effective team,” noted Creandum. The funding will enable Capi Money to accelerate its expansion, targeting a substantial portion of the €382 billion import market in sub-Saharan Africa, as estimated by the World Bank.
Africa-focused investment firms are increasingly directing capital towards startups addressing structural inefficiencies in trade, logistics, and financial services. Capi Money’s model aligns with this trend, positioning it as a key player in the evolution of business payments in emerging markets.
With its newly secured funding, Capi Money aims to enhance its technology, grow its team, and deepen its presence in key markets. The company’s self-service onboarding process and 24/7 transaction capabilities are designed to meet the needs of SMEs requiring swift and cost-effective international payments. By eliminating friction in cross-border transactions, Capi Money hopes to offer African importers the same level of efficiency and affordability that businesses in Europe and the U.S. experience.
“The ability to pay international suppliers quickly and affordably should not be a privilege reserved for businesses in developed economies,” said Mitch Riley, co-founder and CEO of Capi Money. “We are on a mission to level the playing field for SMEs in Africa and beyond.”
As African economies continue integrating into global trade networks, solutions like Capi Money’s have the potential to unlock new growth opportunities, fostering more inclusive economic development across the continent.