Y Combinator-Backed Waza Emerges From Stealth With $8M To Transform How African Businesses Trade Worldwide

Waza, a Y Combinator-backed fintech startup, has officially launched from stealth mode, securing $8 million in seed funding to transform how African businesses manage cross-border trade. 

The funding round was led by major investors including Byld Ventures, Norrsken Africa, and Timon Capital, with the aim of empowering enterprises across the continent to navigate global markets more effectively.

Solving Africa’s Trade Imbalance

The African continent faces a significant trade imbalance, driven by a persistent demand for the dollar—a currency essential for international trade. This demand often surpasses supply, resulting in higher costs and delays in transactions. 

Waza steps in to address these challenges by providing a payment and liquidity platform designed specifically for African enterprises. 

The platform’s tailored payment & liquidity solutions make it easier for African businesses and traders to make their global B2B payments in currencies like USD, EUR and GBP, targeting a $7 trillion market opportunity.

Scaling Operations with Rapid Growth

Since its inception in January 2023, Waza has processed $280,000 in payment volume during its first month, and by May, that figure had surged to $70 million in monthly payments, translating to an annualized transaction volume of $700 million. 

The startup’s revenue model, which includes a take rate of 0.75% to 1% and profits from foreign exchange spreads, is experiencing an average monthly growth of 20%.

Strategic Focus on B2B Cross-Border Payments

Waza distinguishes itself by focusing on B2B cross-border payments, a segment where fintechs are increasingly challenging traditional banks. 

The platform serves a diverse clientele, including multinational organizations, importers, traders, and other fintech developers who require API infrastructure to build cross-border payment solutions.

By leveraging its strong technical foundation, Waza plans to expand beyond Ghana and Nigeria, potentially introducing products like a banking service for businesses and trade financing solutions.

Feature Image Credit: Waza