Waza, a startup specializing in B2B payments and liquidity solutions for businesses in emerging markets, has successfully raised $8 million through a combination of equity and debt financing. This capital injection is aimed at fueling the company’s expansion beyond its current footprint in Ghana and Nigeria, as well as at launching new trade finance products.
The financing round includes a $3 million seed equity investment from a consortium of investors, featuring prominent names such as Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, and Olive Tree Capital. Additionally, Waza has secured $5 million in debt funding from Timon Capital, which will be utilized to initiate trade financing services tailored for large corporate clients.
Maxwell Obi, the CEO and co-founder of Waza, views this financial milestone as a significant step towards revolutionizing B2B payments and improving liquidity access for businesses throughout Africa. He highlighted the company’s commitment to enhancing settlement infrastructure, thereby addressing the challenges of foreign exchange and liquidity shortages. Obi believes that by doing so, Waza will enable African enterprises to engage more effectively in global trade, fostering economic advancement and progress in the regions they operate.
The timing of Waza’s expansion coincides with a growing need for efficient cross-border payment systems, spurred by an increase in remittance flows and international commerce. Projections from the Bank of England suggest that the global market for cross-border payments could surge to over $250 trillion by the year 2027.
Waza was co-founded by Maxwell Obi, who has previously founded companies, and Emmanuel Igbodudu, a seasoned software engineer. The company is registered as a money services business in the United States and holds a license as a virtual asset service provider. Waza has developed a user-friendly B2B payment and liquidity platform that simplifies the process for businesses in emerging markets to make payments to their international suppliers.
Having commenced its operations discreetly in January 2023 as part of Y Combinator’s Winter 23 cohort, Waza has quickly established itself as a key player in the industry. The startup boasts serving hundreds of businesses, processing an impressive annualized payment volume of over $700 million. Waza facilitates business transactions across six continents and has been experiencing a robust monthly growth rate of 20%.
According to Waza, the company achieved a significant financial milestone by reaching profitability in the fourth quarter of 2023, and it has successfully sustained this profitable status into 2024. This accomplishment underscores the startup’s robust business model and the efficacy of its operational strategies.
Earlier in its growth journey, Waza secured a substantial $1.2 million in pre-seed funding in January 2023. This initial injection of capital was earmarked for the development of payment infrastructure tailored to the unique needs of emerging markets. The pre-seed funding round was a foundational step for Waza, enabling the company to lay the groundwork for its subsequent expansion and the introduction of innovative trade finance solutions.
