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    HomeEcosystem NewsLatest FundingWhy TLcom Capital, Others Backed Nigerian FinTech Startup Zone in New $8.5M...

    Why TLcom Capital, Others Backed Nigerian FinTech Startup Zone in New $8.5M Seed Deal

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    Zone, a Nigerian fintech company, has recently raised $8.5 million in seed funding. This infusion of capital will primarily be directed towards scaling its decentralized payment infrastructure. Leading this funding round are Flourish Ventures, a global fintech-focused fund, and TLcom Capital, a pan-African venture capital fund. The investment signifies a strong backing for Zone’s innovative approach towards leveraging blockchain technology to revolutionize payment systems across Africa. Additionally, the funding will facilitate the expansion of Zone’s network coverage to encompass various payment channels, thereby widening its client base and enhancing its service offerings.

    Why Investors Invested

    The decision of Flourish Ventures and TLcom Capital to invest significantly in Zone can be attributed to several compelling factors. In the first place, Zone boasts an experienced team of founders, including Emeka Emetarom, Obi Emetarom, and Wale Onawunmi, who collectively possess a deep understanding of the African banking and fintech landscape. Their track record of successfully providing fintech solutions to numerous financial institutions underscores their competence and positions Zone as a credible player in the market.

    Again one crucial factor driving investor confidence in Zone is the notable traction the startup has already achieved in the market. Zone’s ability to process transactions at more than 6,000 ATMs for over 10 million cardholders demonstrates its capacity to scale and serve a substantial user base within a relatively short period. The fintech’s impressive performance of processing over $1 million within the first three months of launching the ATM use case underscores its operational efficiency and market acceptance. Such early success not only validates Zone’s business model but also indicates a strong demand for its services among financial institutions and consumers alike.

    Besides, Zone’s innovative approach to integrating blockchain technology with legacy banking and payment systems aligns with the growing demand for advanced payment solutions in Africa. By offering a decentralized payment infrastructure, Zone addresses critical pain points within the existing payment ecosystem, such as transaction reliability, speed, and cost efficiency. This unique value proposition resonates with investors seeking opportunities to support disruptive technologies that have the potential to reshape industries.

    More importantly, Zone’s strategic focus on collaboration with banks and fintech companies positions it as a key enabler of digital transformation within the financial sector. By streamlining transaction processes and providing seamless interoperability, Zone facilitates the adoption of cashless payment solutions, thereby driving financial inclusion and economic growth across Africa. This vision of fostering positive societal impact through technological innovation aligns with the investment thesis of Flourish Ventures and TLcom Capital, making Zone an attractive investment opportunity.

    A Look At Zone

    Founded in 2022 by Emeka Emetarom, Obi Emetarom, and Wale Onawunmi, Zone emerged as a spin-off from the renowned Nigerian fintech software provider, Appzone. With a primary focus on blockchain-enabled payment infrastructure, Zone aims to address the evolving needs of Africa’s burgeoning fintech ecosystem. The company’s flagship product, a licensed blockchain network for payments, facilitates seamless transaction flow between banks and fintech companies, leveraging the scalability and reliability of blockchain technology.

    Zone’s value proposition lies in its ability to empower financial institutions and fintechs to transcend traditional payment barriers and embrace the opportunities presented by digital currencies and decentralized networks. Through strategic partnerships and regulatory compliance, Zone has positioned itself as a trusted partner for institutions seeking to navigate the complexities of modern payment systems. With a strong emphasis on innovation and customer-centricity, Zone is poised to catalyze the next wave of financial innovation in Africa and beyond.

    Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

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