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Nigerian fintech Yellow Card raises $33m to fund expansion drive

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Nigerian-based pan-African fintech, Yellow Card, has announced raising U$33 million in Series C funding to enable it drive its global expansion and strategic initiatives, taking its total equity funding to $85 million.

In a statement announcing the funds, Yellow Card’s co-founder and CEO, Chris Maurice, said the capital would be applied to fund growth and expansion, particularly through enhancing Yellow Card’s API and widget products— the gateways for international businesses, including Coinbase and Block, to tap into African markets and for Pan-African companies to easily make international payments and manage their treasury via stablecoins.

“This fundraise not only demonstrates our resilience, but also highlights the vital role of digital assets for businesses across Africa,” said Maurice.

“We are excited about the opportunities, partnerships, and journey ahead; and I’m proud to work with an incredible cohort of investors that share our vision for the industry and the continent.

“Additionally, Yellow Card is developing innovative new products for the continent, strengthening its team and systems, and continuing to lead engagement with regulators across the continent,” Maurice added.

Founded in 2019, Yellow Card has steadily become the largest and first licensed Stablecoin on/off ramp on the African continent with operations spanning 20 African countries and over $3 billion in transactions facilitated across the continent.

In September 2022, the startup had announced the close of its $40 million Series B funding round, and has now followed that up with a $33 million Series C round, led by Blockchain Capital, with participation from Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block, Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital, and Winklevoss Capital.

Speaking on the funding, Aleks Larsen, General Partner at Blockchain Capital, said the future of payments lies in fast, affordable rails for everyone, powered by open networks.

“We couldn’t be more excited to back Yellow Card as they bring Africa on-chain with stablecoins,” Larsen said.

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10 African startups selected for final of Latitude59 pitch competition

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Ten African startups have been selected for the final round of the Latitude59 pitch competition which will see the winner qualify to pitch at the main event in Tallinn, Estonia, with the chance of winning the grand prize $1.1 million.

The Latitude59 pitch competition which is in 12th edition, is Estonia’s flagship startup and tech event and attracted over 3,500 attendees, including more than 900 startup representatives and nearly 600 investors when it was hosted in Tallinn in May.

According to the organizers,
Latitude59 is seeking early-stage startups from across Africa to compete for the chance to pitch at the next edition of its pitch competition, which will take place at next year’s edition of the event.

The event organizers said a total of 382 applications were received from 37 African countries, with the top 10 now selected and will pitch at an event in Kenya on November 28, where the African winner will be chosen.

Eight of the selected ventures are Kenyan and include Eco Nasi, which transforms pineapple pulp waste into high-quality vegan leather.

Others are Grekkon, a platform which scales up moisture sensors for smallholder farmers; NoMa, a tech platform that digitises school transportation; and Paycloud, which is building a neobank to help MSMEs in Africa to pay, get paid, and access credit through payment aggregation.

The other selected Kenyan ventures are Roadrims, which provides reliable, efficient, and cost-effective logistics; Twiva, a social commerce platform; VunaPay, which provides instant payments to farmers; and Zerobionic, which is developing a human-like robotic arm to help students with hearing impairments.

From Nigeria comes AcemyX, an LMS helping students prepare for exams with personalised learning tools and study materials, with Tanzania’s Afya Mama, which is providing answers to questions pertaining maternal care and reproductive health to women via SMS and web app, completing the list.

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Bolt invests $107m in Nigeria to boost safety standards

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Ride-hailing platform, Bolt, has announced an investment of $107 million in its bid to boost safety and service quality in Nigeria’s ride-hailing sector, with a special technology enhancing safety standards for both drivers and passengers.

Lola Masha, Bolt’s Regional Manager for North and West Africa, who made the announcement in a statement, said the “investment will fund new safety technologies, accident prevention measures, customer support upgrades, and public safety awareness campaigns, underscoring Bolt’s commitment to providing a secure and reliable platform.”

She revealed that as part of its quality check, the company had removed more than 5,000 drivers from its platform in 2023 so as to cleanup its database cleanup effort and will continue to implementing a driver score system to maintain quality standards.

“The driver score evaluates performance by monitoring how frequently drivers accept ride requests, successfully complete trips, and respond to passenger feedback. Essentially, it rates drivers based on their performance over their last 100 trips,” she noted.

Masha emphasized that the move came as a result of complains by the Amalgamated Union of App-based Transporters of Nigeria (AUTON) which raised concerns about the potential downsides experienced by users and the psychological stress on drivers, which could negatively affect their performance.

According to her, among the upcoming features are a four-digit trip pickup code and a trip counter, both aimed at making rides more secure and dependable for all users.

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