Waza ends stealth with $8 million to take on B2B cross-border payments

As Africa is becoming more integrated into global trade, sector operators are partaking in closing gaps in cross-border payments.

The reliance on the US dollar is challenging in emerging markets. The dollar offers stability and universal acceptance, but it is also creating a dependency straining local economies. This strain is particularly evident when demand for USD exceeds supply, leading to delays and increased costs.

Waza, a fintech addressing these issues by enhancing foreign exchange liquidity and offering a more efficient settlement infrastructure for African businesses, just came out of stealth with $8 million in seed  from Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, Olive Tree Capital, and others. 

Unlike many other cross-border payment platforms focusing on consumers, Waza is specifically targeting B2B payments.

Part of the intake is $5 million debt funding from Timon Capital. Waza will use this to pilot trade financing for large enterprise clients. To tap into a $371 billion trade finance market, it looks to address often-overlooked aspects of the continent's trade ecosystem. 

This is essential for businesses grappling with long supply chains and extended payment cycles. Dual focus on liquidity and financing positions it as a comprehensive solution for businesses trying to tap global trade.

Since launching in January 2023, Waza has experienced rapid growth. It became profitable within its first year of operation, a rare accomplishment for a fintech startup, especially in such a challenging and competitive market. 

The company is maintaining that profitability into 2024, with a monthly growth rate of 20%. The new funding is enabling Waza to expand beyond Ghana and Nigeria, bringing its services to more markets across Africa. 

Youcef Oudjidane, Managing Partner of Byld, said: "It is rare to see a startup grow so quickly, a testament to Max and the team, and a nod to the large opportunity in cross-border payments and trade."

 “The Waza team has deep experience around cross-border flows, and they are going after one of the bigger opportunities in frontier markets. We're excited to finally have a chance to partner with Maxwell and the team,” said Chris Muscarella, Managing Director of Timon Capital.

Waza's co-founders, Maxwell Obi and Emmanuel Igbodudu, bring valuable experience. Maxwell has a background in fintech, has an exit from Amplify and is ex-leadership at Sendwave. On his part, Emmanuel was a senior engineer at Revolut and has worked at other leading technology companies.

The funding endorses its mission to transform B2B payments and liquidity. As it expands operations and explore new trade finance solutions, it has a pivotal role in unlocking Africa's global trade potential.