Canza Finance Secures $2.3 Million in Strategic Funding to Pioneer FX DeFi Platform for African Startups

Canza Finance Secures $2.3 Million in Strategic Funding to Pioneer FX DeFi Platform for African Startups

Canza Finance’s Strategic Funding:

Canza Finance, a pioneering Web3 neobank focusing on facilitating cross-border payments for African startups, has successfully concluded a $2.3 million strategic funding round.

The funds will be utilized to acquire licenses from diverse financial regulators across Africa and establish the foundation for its revolutionary FX DeFi platform, Baki.

Cumulative Funding and Key Investors:

This latest funding round brings Canza’s total raised capital to $5.5 million after previously securing $3.27 million in a seed round last year.

The round was led by Polychain Capital, with notable participation from Protocol Labs, Avalanche’s Blizzard Fund, 99 Capital, Stratified Capital, Hyperithm, and others.

Addressing Cross-Border Payment Challenges:

Businesses operating in African markets, such as Nigeria, Cameroon, and Senegal, often grapple with slow and expensive traditional methods for cross-border payments.

These challenges hinder them from accessing favorable deals on international transactions, stock trading, or earning interest on their funds.

Canza’s Mission and Operational Approach:

Canza Finance, under the leadership of co-founder and CEO Pascal Ntsama, aims to democratize access to financial services typically reserved for large corporations.

Collaborating with FX agents in the target regions, Canza provides a faster and more cost-effective solution for international money transfers.

Transactions are facilitated through the submission of a valid invoice and completion of KYC/KYB processes, with Canza determining the exchange rate and ensuring completion within 24 hours.

Revenue Model and Fee Reduction Through Baki:

Canza generates revenue by charging 1% of the processed transactions. The startup envisions reducing transaction fees to 0.2% through the introduction of Baki, its synthetic FX exchange on-chain protocol.

Baki allows the exchange of different currencies digitally, utilizing stablecoins pegged to the dollar, thereby minimizing forex fees and reducing transaction costs to 1%.

Current Transaction Volume and Growth Plans:

With a claimed weekly transaction volume of $2,000,000 and a client base of 150 businesses, Canza aims to boost infrastructure development in Africa.

Co-founder and CTO Oyedeji Oluwoye expressed the company’s focus on expanding infrastructure, obtaining necessary licenses, and driving the growth of their DeFi infrastructure products.

Future Licensing Goals:

In the upcoming months, Canza Finance plans to acquire multiple licenses essential for virtual asset custodian, broker-dealer, and exchange services.

Ntsama specified the goal of securing a Money Services Business (MSB) license in the United States, obtaining an FX license in Nigeria, and acquiring three crucial Virtual Asset Licenses from the Financial Service Commission of Mauritius.

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