Bitmama Secures $2 Million Pre-Seed To Grow Its Operation In New Markets
The US and African-based blockchain payments startup closed this funding from a group of foreign and domestic investors ten months after its initial pre-seed round of $350,000.
Bitmama Inc. said it has raised an additional $1.65 million, bringing its total pre-seed round to about $2 million.
Bitmama is a highly-secure blockchain payment platform pioneering “Crypto Beyond Trading” for Africans globally. The company is approaching the African crypto market differently by promoting the awareness and adoption of crypto through innovative product offerings, including its virtual crypto debit cards, which afford over $10,000 in monthly spending limits. Powered by VISA, these cards are funded with stablecoins and can work anywhere worldwide for online transactions.
According to Bitmama, the latest round is led by Unicorn Growth Capital and Launch Africa Ventures, with participation from Adaverse and follow-on from Flori Ventures, which led its earlier pre-seed round. New investors in the round include Tekedia Capital, GreenHouse Capital, ODBA, Five35 Ventures, Chrysalis Capital, Enrich Africa, Thrive Africa, Angellist Ventures, and angel investors, including CELO founders; Rene Reinsberg, Marek Olszewski and Honey Ogundeyi.
Bitmama’s new pre-seed round will expand the company’s operational presence, strengthen its team across different markets, consolidate its product offerings, and plot market penetration across Africa while rapidly scaling new use cases for cryptocurrency. Currently, the company’s main products are the Bitmama exchange, which allows users to access virtual assets and explore several cryptocurrency use cases, then Changera, a social payment solution that enables non-crypto-savvy customers to use their money without limits from anywhere in the world.
Bitmama is currently in three African markets: Nigeria, Ghana, and Kenya. Bitmama’s users can trade several cryptocurrencies, use their debit cards for regular online payments, pay utilities and perform transactions such as staking to hedge against currency devaluation.
The startup has built a distributed remote team across Ghana, Nigeria, and Kenya, working to democratise Africa’s highly fragmented payment system. According to the team, the goal is to leverage the blockchain in building solutions to power seamless peer-to-peer payments across the continent.
Ruth Iselema, Founder and CEO of Bitmama Inc. said:” Bitmama has made a number of strides in the past year. We’ve rolled out two products, both of which are fast closing in on 100,000 users across the African market and recording impressive daily active users across our range of product offerings despite the market dynamics. We are building Africa’s most user-friendly, and innovative blockchain company, and are glad to have the backing of seasoned investors and partners who have walked similar turfs themselves. We are privileged to learn from their blended experiences across corporate and blockchain business verticals. We’re confident of the results we’ve achieved so far and we’re set to build the next big solution that the market deserves.”
Janade Du Plessis, Managing General Partner at Launch Africa, said: “As a prominent Pan-African VC fund, we see our partnership with Bitmama as a way to truly allow all Africans with the ability to trade and manage cryptocurrencies and digital assets conveniently and universally, creating a significant impact on allowing more people to trade and transact across Africa. This is something that we specifically value in our Fund and what Bitmama in particular delivers.”
Hema Vallabh, Founding Partner at Five35 Ventures, said: “Being a leading female-focused VC fund, we at Five35 Ventures look forward to helping Ruth and her dynamic team scale Bitmama, especially seeing the growth of Changera, the remittance platform that allows all Africans to transact internationally at much cheaper rates than established remittance companies in the market.”