Summary:
Yellow Card raises $33 million in Series C funding led by Blockchain Capital.
The company shifts focus from retail customers to business clients to enhance profitability.
Currently serves around 30,000 businesses across Africa and internationally.
Transaction volumes increased from $1.7 billion to over $3 billion in a year.
Highlights the innovative regulatory environment in Africa for crypto.
Africa's Crypto Boost
Africa’s blockchain and crypto space is making headlines with a significant venture boost during challenging times for startups. Amidst some companies retreating or shutting down due to harsh regulations and mismanagement, Yellow Card, a U.S.-founded crypto platform launched in Nigeria in 2019, is leading the charge. The company has successfully raised $33 million in Series C investment, led by Blockchain Capital, bringing its total funding to at least $88 million.
The Shift to B2B
Initially targeting retail customers, Yellow Card is pivoting towards business clients. Co-founder and CEO Chris Maurice explained, "The big shift for us has been our focus on working predominantly with businesses now." This change was driven by the realization that businesses generate higher transaction volumes and can sustain more significant operations compared to individual retail users. The company has raised its minimum transaction amounts to attract businesses managing treasury and accessing stablecoins.
Serving 30,000 Businesses
As of today, Yellow Card operates with around 30,000 businesses across Africa and internationally, assisting them in payments and treasury management primarily through stablecoins. Maurice emphasizes that this approach still aligns with the company's original goal of making crypto accessible to the masses, as many small businesses are owned by individuals.
Stablecoins: A Key Driver
The demand for stablecoins, like USDT and USDC, is soaring in Africa, where local currencies are volatile. These stablecoins allow businesses to hedge against inflation and currency devaluation while facilitating international payments. Yellow Card’s transaction volumes have surged from $1.7 billion early last year to over $3 billion, with revenue increasing sevenfold since January 2023.
Innovative Regulation
Despite global challenges, Maurice believes African regulators have a better understanding of crypto than in other regions. He cites recent licensing guidelines in Nigeria and frameworks in countries like South Africa and Ghana as evidence of a more crypto-friendly environment. Yellow Card aims to continue developing its offerings while engaging with regulators to foster a supportive ecosystem.
Image Credits: Yellow Card
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