Cauridor, an Ivorian fintech company, has successfully raised $3.5 million in seed funding to further develop its payment infrastructure, which facilitates the movement of funds for merchants, banks, telecom operators, and money transfer companies across Africa. This funding marks a significant step in the company’s mission to streamline financial transactions within the continent.
Cauridor’s platform is designed to support a variety of payment methods, including mobile wallets, bank transfers, and cash pickups. The company operates through a network of over 25,000 agents located in Guinea, Senegal, Ivory Coast, Sierra Leone, and Liberia. These agents, typically small business owners equipped with point-of-sale (POS) devices, play a crucial role in the region’s distribution system by enabling cash deposits, withdrawals, and bill payments.
Adopting a hybrid approach to address the challenges of money transfers, Cauridor combines cash networks with digital infrastructure to meet local payment needs. This strategy has allowed the company to establish remittance corridors to key markets such as Ghana and Nigeria, as well as secure group-level contracts with major players in the industry, including Ria, MoneyGram, and Western Union. Additionally, Cauridor has formed partnerships with telecom giants Orange and MTN to enhance its service offerings.
From Remittance to B2B Payments
The inception of Cauridor can be traced back to the personal experiences of its founders, Oumar Rafiou Barry and Abdoulaye Bah, who faced significant challenges when sending money back home to Guinea while studying in Canada. They encountered slow and costly remittance options in Francophone Africa, a region that has long been underserved by the global remittance industry.
In 2019, motivated by their frustrations, the founders launched BNB CashApp, a consumer-focused remittance platform that allowed users in Canada to send money to Africa. The app integrated directly with banks, mobile wallets like MTN, and an agent network equipped with a mobile portal to facilitate cash payouts. However, as the platform expanded, the founders recognized a more significant issue: the fragmented and inefficient payment infrastructure across Africa.
We realized early on that the rails in Francophone Africa were almost nonexistent. So we had to go in and start building payment rails in the region since the payments there were fragmented.
Oumar Rafiou Barry, Cauridor CEO & Co-founder
Seizing the opportunity, the team pivoted in 2022 to focus on building comprehensive payment rails for the region. By 2023, Cauridor had merged its consumer remittance business with its B2B payment infrastructure under the Cauridor brand, mirroring the operational models of successful fintechs like Tanzania’s Nala and Rafiki.
This strategic shift has proven fruitful, with over 90% of the company’s revenue now derived from its payment rails business. In 2023, Cauridor processed 2 million transactions, achieving a total payment volume (TPV) of $300 million, which is projected to grow to $500 million in 2024.
Competition and Future Plans
While Barry acknowledges competition from larger players such as Onafriq (formerly MFS Africa) and Thunes, he believes Cauridor has maintained its relevance by focusing on markets that have been overlooked, such as Guinea and Liberia. He attributes the company’s customer retention to its commitment to hands-on customer service and competitive pricing. Cauridor actively addresses common issues, such as rejected mobile money transactions due to incomplete Know Your Customer (KYC) processes. For instance, if a recipient can only access $10 out of a $700 payment, Cauridor intervenes to help upgrade their account and ensure the transaction is completed successfully.
Barry asserts that Cauridor’s strong local presence provides an advantage in securing better foreign exchange margins, which are then passed on to customers. This competitive edge has attracted significant clients like MoneyGram, which switched from competitors to benefit from improved rates and customer support.
Interestingly, the competitive landscape in cross-border payments does not preclude collaboration. Some of Cauridor’s competitors utilize its infrastructure in specific regions, while Cauridor partners with companies like Thunes to extend its global reach. Cauridor currently employs around 200 people worldwide and has established offices in Ivory Coast, Senegal, Guinea, Sierra Leone, and Liberia.
