Waza Raises $8M to Revolutionize Cross-Border Payments for African Businesses, Targets $7 Trillion Market

Waza Raises $8M to Revolutionize Cross-Border Payments for African Businesses, Targets $7 Trillion Market | Waza Founders
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Waza, a Y Combinator-backed payment and liquidity platform, has recently emerged from stealth mode, securing $8 million in seed funding. The startup aims to address the growing liquidity needs of African businesses by simplifying global payments. With a vision to capture a $7 trillion market and potentially generate $250 billion in revenue, Waza is positioning itself as a key player in the cross-border payments landscape.

Addressing Liquidity Gaps in Emerging Markets

Emerging economies, particularly in Africa, face significant trade deficits due to the high demand for the dollar, which dominates global trade. This demand often exceeds supply, leading to increased costs and delays in trade. The situation is further exacerbated by a lack of tech solutions focused on large enterprises and multinationals. Many existing cross-border payment platforms have prioritized consumer-facing products, leaving a gap in the market that Waza intends to fill.

Founders' Vision and Market Strategy

Waza was founded by CEO Maxwell Obi and CTO Emmanuel Igbodudu, both of whom bring extensive technical and industry experience. Obi, who previously co-founded Amplify and held leadership roles at Sendwave, conceived the idea for Waza after recognizing the need for a robust solution to manage global supplier and vendor payments. Igbodudu, a former senior engineer at Revolut, brings valuable technical expertise that will help Waza expand into other trade finance and cross-border payment solutions.

Growing Transaction Volumes and Revenue

Since its launch in January 2023, Waza has seen rapid growth. In its first month, the platform processed $280,000 in total payment volume. By May, this figure had surged to $70 million in monthly payment volume, equating to an annualized transaction volume of $700 million. The startup generates revenue through FX spreads and a take rate of 0.75% to 1%, with transaction volumes and revenues growing by an average of 20% each month.

Waza's Competitive Edge and Future Plans

Waza differentiates itself by offering affordable and fast settlement for cross-border payments, supported by strong global banking relationships. The startup currently facilitates payments and liquidity management across six continents for a diverse client base, including multinational organizations, importers, traders, and other fintechs. As Waza continues to grow, it plans to expand into new markets beyond its current operations in Ghana and Nigeria.

Expanding into New Verticals

Looking ahead, Waza intends to diversify its offerings by exploring additional verticals in B2B payments. While the primary focus remains on moving money quickly and cheaply, the company is also considering developing a banking product for businesses similar to Brex or Mercury, potentially including credit, financing, or a stablecoin banking product for the digital economy.

Seed Funding to Fuel Growth and Expansion

The $8 million seed round includes $3 million in equity from investors such as Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, and Olive Tree Capital. Additionally, Waza secured $5 million in venture debt financing from Timon Capital, which will be used to pilot trade financing for large enterprise clients. This funding will support Waza's initiatives to expand its market presence and develop new products tailored to the needs of African businesses.

Conclusion: Waza's Potential in the Global Payments Market

As the cross-border payments market is projected to exceed $250 billion by 2027, Waza is well-positioned to challenge traditional banks and fintech competitors in the B2B sector. With its strong leadership, innovative approach, and recent funding, Waza is poised to make a significant impact on the global payments landscape, starting with Africa.