Topics
previous
AI
Amazon
Image Credits:HUB2
Apps
Biotech & Health
mood
Image Credits:HUB2
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
fundraise
Gadgets
Gaming
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
secrecy
Robotics
Security
Social
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
A fintech from Ivory Coast — part of one of the most economically challenged and financially fragmented region in the world — has raised funding for an ambitious goal : to become the “ Stripe for Francophone Africa . ”HUB2 , as the inauguration is called , already work with some 55 neobanks , requital companies , remission company and cryptocurrency supplier , and it has now picked up $ 8.5 million to expand that inclination , and to up its game in its technical school push-down storage .
Pan - African early - point investor TLcom Capital is leading the Series A financial backing , with FMO , Enza Capital , Bpifrance , and Eric Barbier , the founding father of Thunes , among the longer list of investor .
Ashley Gauzere , a former telecom engineer who antecedently work out for Orange Africa in the Middle East , ground HUB2 in 2019 after noticing the particular challenge in the region ’s atomic number 99 - commerce industriousness .
merchandiser wait to work with mobile banking supplier ( consumers ’ and business organisation ’ earphone accounts double as bank accounts in many developing countries ) often find it hard to sell regionally since peregrine money operator and banks in Francophone African countries operate in silos due to regulations and variances across banking system . On the other side of the transaction , reach last - mile consumers for some of these financial foundation was difficult due to depleted banking incursion . defrayment issues like fragmentation , interoperability break , and collection challenge are far-flung .
Inspired by Stripe , the U.S. Jagannatha now valued at$70 billion , Gauzere saw an chance to construct an oblation that could knit together complex procedure behind an API that party could apply to make it wanton for them to take payments and deal proceedings . ( Gauzere is not the only one : The founders of Nigeria ’s Paystack hadambitions to become a Stripe - similar providerfor English - speaking Africa ; that venture scaled enough to eventually get the attention of Stripe , whichacquired it . )
“ The one matter I wanted to clear in French - speaking Africa after two tenner in telecom and seeing the need for eminent - quality , interoperable requital resolution was create infrastructure and unifying requital in the region like a Stripe - like platform , ” he remarked .
HUB2 claims to offer “ comprehensive reporting and unlined integration across defrayal methods , ” partnering with wandering money supplier like Wave , Orange , MTN , Moov , Free , and T - Money , and it simplifies payments by enabling fintechs to collect roving money , money box transfers , card payments , and cryptocurrency through a single API .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Targeting payment providers and fintechs as customers was not HUB2 ’s first strategy . It was n’t even its second strategy .
Initially , Gauzere call up the big opportunity was in targeting independent e - mercantilism merchants directly .
It found that the market was still too small , however , so it shifted focus to magnanimous corporates in the region looking to transition from Johnny Cash to digital payments . That led the party to expand its services to let in defrayal collection via mobile money , coin bank card game , and period - of - sale .
For over a year , HUB2 followed that strategy and focalise on the insurance sphere , which then led to aid from buzzy fintechs like Ivorian YC - indorse Djamo . That led to the company pivot a third time , serve fintechs exclusively .
Today , HUB2 operates as the backbone for 55 fintechs across French - speaking Africa — they includeJulaya , Onafriq , NALA , andCinetPay — providing requital substructure for these companies to power their operations . This alignment with fintechs , which are now responsible for for 98 % of its volumes , avail HUB2 accomplish product - market fit and drove its growth over the last three years .
The defrayal collector is on track to process € 1 billion in transaction book ( TPV ) this year — a marked growth from the € 70 million it plow in 2022 — fueled by consistent 15 % calendar month - over - month growth in both TPV and revenue , which come from take charge per unit on these volume .
“ We have a very horizontal bid , and our goal is to offer all payment methods — from nomadic money and cards to banking and cryptocurrencies — embrace the entire footprint for fintechs , ” explainedJean - Rémi Kouchakji , who joined HUB2 as co - CEO in 2023 .
He tote up that focus is important for it at this microscope stage . “ If you want to offer everything with the good permission , utter compliance , and technical excellence , verticalizing everything is n’t exactly viable , ” he said .
But as it scales , the company may still grow to serving smaller businesses in the longer term .
Small and medium enterprise ( SMEs ) account for 90 % of businesses in Africa , making them a crucial segment that can not be overlook . It would also put it in line with competition . Paystack and Flutterwave , for exercise , have scale by addressing the penury of endeavor client and humble businesses , a model HUB2 could emulate to expand its reach .
Similarly , the five - year - one-time fintech is ramping up attempt to shore up up its payment infrastructure in general .
accord to co - CEO Ashley Gauzere , mobile money has drive most of HUB2 ’s transactions , with less ingestion for other payment methods such as credit plug-in , banking company transfers , and cryptocurrency , showing that its idea of a in full interoperable ecosystem is still developing .
To address this , HUB2 will hustle out cross - border payment solutions , introduce stablecoin - free-base remittal services , and expound its batting order payment capabilities by deepening its integration with CyberSource , Visa ’s payment processing platform , across more African market . presently , it operates in six Francophone African countries : Senegal , Burkina Faso , Benin , Togo , and Cameroon , but is aim full regional coverage within the next two years .
The five - year - old fintech has a 35 - person team across three offices in France , Ivory Coast , and Mauritius .
“ We ’re gallant to work with HUB2 as the company stretch its ambit across Francophone Africa , ” said Eloho Omame , better half at TLcom Capital . “ HUB2 ’s achievement in the region , meld with TLcom ’s track record in Anglophone markets , create a herculean partnership that will make digital requital more approachable across the continent . ”
