Fintech startup, Zone raises $8.5m seed to expand coverage

A Nigerian fintech startup that uses blockchain networks to enable payments and acceptance of digital currencies, Zone, has raised $8.5m in a seed round.

The new funding will enable Zone to further expand the coverage of its network domestically and connect more banks and financial services companies, the startup said in a statement on Monday.

The funding was led by TLcom Capital and Flourish Ventures. Additional capital was raised from Digital Currency Group, Verod-Kepple Africa Ventures, Alter Global, and Endeavor Catalyst.

Zone is one half of the Appzone Group, founded by Obi Emetarom, Emeka Emetarom, and Wale Onawunmi in 2008.

However, it underwent a rebrand in 2022, with Zone becoming its blockchain-powered payment infrastructure and its cloud-based software as a service becoming Qore.

The CEO and co-founder of Zone, Obi Emetarom, said despite the funding drought, the fact that Zone had more interested investors than needed was a sign of trust in the fintech brand and investor excitement about the opportunity to redefine payment infrastructure in Africa.

“As we step into this new phase at Zone, we are re-energised, and our commitment to transforming Africa’s payment infrastructure is renewed. Our new investors and existing shareholders, including CCA, Lateral Capital, Constant Ventures, and V8, bring more than just financial backing, as their global scope and deep expertise make them invaluable partners for us.

“With their support, we are poised to accelerate our mission to connect every monetary store of value and enable real-time payments within and across geographical borders. Zone is committed to staying at the forefront of technological advancement and industry evolution in financial services,” the CEO said.

Zone poses as Africa’s first regulated blockchain network for payments and has already signed up over 15 of Africa’s largest banks and fintech companies.

Flourish Ventures, an early-stage global fintech venture firm, will provide Zone with a global perspective, networks of industry influencers, and extensive Africa fintech expertise, paving the way for expansion into new markets.

Partner at Flourish Ventures, Ameya Upadhyay, said the fundraise was a fundamental leap that will allow customers to experience a completely new standard of reliability, speed, and cost efficiency at the ATM, at POS machines, and online.

“We are excited by the potential for Zone’s technology to be replicated across borders to advance payment innovation globally.

“The fact that Zone is led by Obi and Wale, who are veterans of the banking industry, reinforces our conviction that Zone can fulfill our shared goal of moving the entire sector forward,” he said.