Bitmama, a blockchain startup based in Nigeria has announced that it has closed its pre-seed funding round at $2 million. The firm recently added $1.65 million to the $350,000 that it raised in October last year.
The blockchain firm is working to democratize Africa’s highly fragmented payment system by leveraging blockchain-based solutions. Bitmama has spread its tentacles to Kenya and Ghana, making it one of the top blockchain firms in Africa.
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Ruth Iselema, the Bitmama CEO, founded the Africa-focused crypto payments startup in 2019. The Nigeria-based company began as a WhatsApp group where members learned about cryptocurrency, especially Bitcoin, and made transactions.
Bitmama, subsequently, developed a crypto exchange platform and allowed these users to access digital assets formally and explore other use cases, like buying, selling, and swapping crypto, and peer-to-peer transactions.
More recently, the firm introduced Changera, a social payment solution that allows customers to use stablecoins to facilitate remittances and international payments on Netflix and Amazon via virtual cards.
Iselema further talked about the development: “We started Bitmama to make it easy for anyone across the African continent to buy and sell cryptocurrency. But as time passed, we saw a couple of use cases we could employ this technology to solve. Many people wanted to make transactions asides from buying and selling crypto, so we built stuff that could also let them buy local and international airtime and data. Then, due to local bank card limitations of $20 monthly spend, we provided virtual dollar cards for Nigerians to make international purchases.”
A lot of companies were involved in the blockchain’s pre-seed funding. They include Unicorn Growth Capital, Launch Africa, Adaverse, Flori Ventures, Tekedia Capital, GreenHouse Capital, ODBA, Five35 Ventures, and other angel investors.