Conduit, a fintech company focused on simplifying cross-border B2B payments, is setting its sights on Africa following a successful $6 million seed extension round led by Helios Digital Ventures, the venture capital arm of Helios Investment Partners. After launching its platform in Latin America in August 2023, Conduit enables businesses to perform cross-border transactions in US dollars via ACH or SWIFT, regardless of whether they have a U.S. entity. This expansion into Africa follows Conduit’s strategic shift away from crypto-backed products towards traditional banking services, a change that has garnered significant traction in markets that struggle with accessible payment infrastructures.
Pivoting to Meet Real-World Business Needs
Conduit originally entered the fintech space with a platform designed to connect fintechs and neobanks with crypto-backed earning products, intending to merge traditional finance with decentralized finance (DeFi). However, the sharp decline in the crypto market in 2022 prompted Conduit to reassess its business model. The company recognized that many businesses, particularly in emerging markets, face significant challenges in accessing reliable and affordable cross-border payment solutions. As a result, Conduit pivoted to focus on B2B cross-border payments, a move that has proven to be highly effective.
In Latin America, where Conduit initially launched its B2B platform, businesses in countries like Colombia, Brazil, and Mexico have long struggled with access to US dollars, reliable SWIFT connections, and other essential payment rails. By shifting its focus from crypto to traditional finance, Conduit has been able to address these pressing needs, offering a platform that simplifies cross-border payments and provides businesses with a more efficient way to transact globally.
Tackling Cross-Border Payment Challenges in Africa
Recognizing similar challenges in Africa, Conduit has begun expanding its operations into key markets like Kenya and Nigeria. These regions face similar issues to those in Latin America, including difficulties in accessing US dollars and the high costs associated with international transactions. Conduit’s platform, which partners with local banks to facilitate cross-border payments, has already gained traction in these markets. The company reports that its annualized transaction volume has surged to over $5 billion, with 20% of that volume coming from its new African markets. The company expects Africa to soon surpass Latin America in terms of transaction volume as the demand for efficient, transparent payment solutions continues to grow.
Conduit’s expansion in Africa is being spearheaded by Eric Wainaina, the former director of The Kenyan Wall Street. He will manage the fintech’s operations in the region, with plans to further expand into other African countries such as Ghana and South Africa. In these markets, Conduit will compete with established players like Aza Finance, Verto, and Waza, offering businesses a more streamlined and cost-effective way to manage their cross-border transactions.
Building a Global Presence with a Focus on Profitability
Conduit’s growth strategy extends beyond Africa, with plans to offer its cross-border payment services in Asia and other emerging markets. The company’s long-term goal is to rebuild the backend for global payments, providing businesses in frontier markets with the tools they need to compete on a global scale. Wale Ayeni, managing partner at Helios Digital Ventures, emphasized the importance of connecting African ecosystems with the global economy, a mission that Conduit is well-positioned to accomplish.
As part of its broader roadmap, Conduit aims to achieve profitability by the end of the year, a goal that reflects the company’s commitment to sustainable growth. With a strong team in place, including compliance expert Mark Graves and operations lead Andre Masse, Conduit is well-equipped to navigate the complexities of cross-border payments and continue its expansion into new markets.
