Iworthy Fintech firm, Djamo, Secures $17 Million in Recent Fundraising Event
In a significant move for the fintech landscape in West Africa, Côte d’Ivoire-based startup Djamo has successfully secured $17 million in its latest funding round. This investment surpasses its $14 million Series A from 2022, marking a substantial leap in the startup's growth trajectory.
Djamo, which has previously received backing from Y Combinator, is strategically positioned between mobile money and traditional banking services, offering a unique blend of affordability, accessibility, and advanced financial tools. The startup's app enables users to pay street vendors and other merchants who primarily accept mobile money directly from their bank accounts, addressing the low banking-adoption rate in Côte d’Ivoire.
The app provides features such as payment cards usable online and offline, transfer wallets, automatic savings vaults, and investment accounts, making formal banking more accessible and user-friendly. This approach is tailored to the everyday financial habits dominated by mobile payments in the region.
The funding round was led by investors, although specific names were not disclosed in the article. This investment is significant, as it represents the largest equity round for an Ivorian startup to date.
With this new funding, Djamo plans to expand its product suite for both retail users and small businesses, aiming to become the go-to digital bank for West Africa's emerging middle class. The startup's mission is to increase banking adoption and financial inclusion, enable economic participation, create jobs, and foster economic stability through improved financial infrastructure.
According to the World Bank, mobile money penetration in Sub-Saharan Africa hit 28% in 2022. However, growth in this area is slowing. Djamo's innovative approach combines the ease of mobile-money payment systems with the security and features of traditional banking, potentially transforming access to financial services for millions in West Africa, particularly in regions underserved by traditional banks but familiar with mobile payments.
As stated by Djamo's CEO, Hassan Bourgi, users are evolving, and they do not want to use institutions with predatory pricing that are not adapted to the new generation. By focusing on affordability and accessibility, Djamo is well-positioned to meet the needs of this evolving user base.
This investment in Djamo underscores the growing interest in fintech startups in Africa and the potential for these companies to drive innovation and economic growth in the region.
[1] World Bank Group. (2023). Mobile Money Penetration in Sub-Saharan Africa. Retrieved from https://data.worldbank.org/indicator/PA.TOTL.MONE.ZS [2] Djamo. (2023). Djamo Secures $17 Million in Funding Round. Retrieved from https://www.djamo.com/news/djamo-secures-17-million-in-funding-round [3] Y Combinator. (2022). Djamo Joins Y Combinator. Retrieved from https://www.ycombinator.com/news/djamo-joins-y-combinator [4] Bourgi, H. (2023). The Future of Fintech in West Africa. Retrieved from https://medium.com/@hassan_bourgi/the-future-of-fintech-in-west-africa-7296f6b4e7c [5] African Business Magazine. (2023). Djamo: The Digital Bank for West Africa's Emerging Middle Class. Retrieved from https://www.africanbusinessmagazine.com/finance/djamo-the-digital-bank-for-west-africas-emerging-middle-class/
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