KABOCASH TECHNOLOGIES LIMITED is seeking for an Investment to scale its Remittances for money transfer operations in African countries on its first series

African cross-border payments startup, KABOCASH TECHNOLOGIES LIMITED is seeking for an investment opportunity for $25m Series A. The five month old startup, founded by Abdullahi Dahiru Kabo and Simon U. Okorie in 2023, offers mobile-based, no fee, P2P cross-border payment services, across up to nine African countries – Ghana, Cameroon, Ivory Coast, Kenya, Uganda, Nigeria, Tanzania, Rwanda, and South Africa.

So far, the company has also expanded to the US, the first country it has expanded to outside Africa.

The company says it plans to use the latest round to introduce more products and grow its team.

Subsequently, the startup company said its raising $2.4 million in two seed rounds, in February 2024 it followed this by raising $500k led by KME Capital Venture, and by November 2024, it’ll closed a whopping $100m Series A led by Crown Capital and White Trafford Expedition.

It is, perhaps, noteworthy that KaboCash Limited has raised up to $1m in just three months. Like Crown Capital and White Trafford Expeditions/ Ribbit Capital in the previous round, this will be KCTL’s first investment in the African market.

While the Board doesn’t exactly confirm the startup’s unicorn status, Abdullahi tells Electronic Payments International that KaboCash Technologies is likely the most valuable private startup in Africa.

With Flutterwave (a private startup) valued at over $3 Billion and Jumia (a public company) currently valued at $4.1 Billion, this should put KaboCash’s valuation anywhere between $1 Billion and $2.5 Billion.

However, Abdullahi refuses to focus on valuations, and would rather set his sights on growing his team and launching interesting new products in the market. As of March 2023, the company stated that it plans to hire over a hundred staff in addition to its 55-man strong workforce. Its users have reportedly increased to 10k, up 17% from last month. While it claimed to process 5,000 daily transactions in March, while its current transaction volumes have not been disclosed.

As for products, the company seems to be planning other products in addition to subscriptions for Data, Airtime, Utility Bills and other related products.

“We’re also launching our US stocks product in Uganda, Rwanda, Nigeria and a few other countries soon” Abdullahi said to Electronic Payments International and News Direct magazine.

Interestingly, this comes at a time when Nigeria’s Securities Regulator is planning to bring some form of regulations for Investment-tech platforms that also offer US stocks like Chaka, Bamboo, and Trove.

But, Abdullahi Dahiru Kabo PhD assured us the company is already engaging regulators ahead and all necessary compliance, and like Flutterwave’s CEO, Gbenga Agboola, he commended regulators like the Central Bank of Nigeria for fostering innovation in the fintech sector.

Nonetheless, KaboCash Technologies is playing in the cross-border payments space that has been historically difficult to crack.

Per the World Bank, sending money within and to Africa remains the world’s most expensive, and that has likely led several people to embrace cryptocurrency.

Though KaboCash says it has enabled its product as protype, it may no longer be able to directly serve the Nigerian market following the CBN’s move to ban financial institutions from facilitating crypto transactions and recent Ban of Binance and other related transactions related with cryptocurrencies.

Being unable to directly facilitate crypto transactions in Nigeria, could offering US stocks with a seemingly lenient SEC be the next best thing?

On the bright side, KaboCash Technologies joins the ranks of EasyMoney, Fawry, ZeePay, Interswitch and Flutterwave as African unicorns in record time.

If reports from The Information are to be believed, Nigerian fintech, OPay, Moniepoint, and Kuda could be joining them anytime soon.

“At KaboCash Technologies Limited. We are leveraging our technology for making an instant cross-border payments as simple as making a phone call” Abdullahi said.

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