Payment and liquidity platform Waza has raised USD 8 million in a seed funding round to support global trade for African businesses. Specifically, the startup aims to assist African businesses and traders in managing payments to their global suppliers.

According to the company, it is targeting a market estimated at USD 7 trillion, with the potential to generate USD 250 billion in revenue. Recent reports cited by TechCrunch indicate that the cross-border fintech and payments sector, particularly for Y Combinator-backed startups, has gained momentum. The market, expected to exceed USD 250 billion by 2027, is witnessing an increase in competition from fintechs, especially in the B2B space, challenging traditional banks.

A closer look at Waza Waza began its operations in January 2023 following its participation in Y Combinator’s winter batch. The company is looking to leverage the growing trend in global payments, starting with the African market. In its first month, Waza processed USD 280,000 in total payment volume, as reported by TechCrunch.

The same source reveals that, by May, the fintech had reached up to USD 70 million in monthly payment volume, which translates to an annualised transaction volume of USD 700 million. Waza provides payment and liquidity management services to businesses across six continents, serving a diverse range of clients. These include multinational corporations such as US-based airlines operating in Africa, importers and traders dealing with suppliers from countries such as India, China, and the UK, as well as other fintechs and developers requiring API infrastructure for cross-border payments.

According to Waza officials, the company's value proposition focuses on affordability and speed of settlement, addressing the needs of businesses that require quick payments to suppliers to facilitate trade. They highlighted the company's global banking relationships and partnerships as key advantages, allowing Waza to offer competitive pricing and capture a significant share of the market. The seed funding will support these initiatives and facilitate Waza’s expansion into new markets beyond its current operations in Ghana and Nigeria.

The funding round includes USD 3 million in equity from investors such as Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, and Olive Tree Capital. Additionally, Timon Capital, based in Lagos and New York, provided USD 5 million in venture debt financing, which Waza plans to use to pilot trade financing for its larger enterprise clients. Commenting on the investment, officials from Timon Capital noted that the Waza team has substantial experience in cross-border flows and is pursuing one of the larger opportunities in frontier markets.

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