Crypto-based startups have been attracting the attention of Africa-focused investors recently. Busha, a Nigeria-based digital platform that helps people buy, sell and store cryptocurrency has become the latest to join the list, raising seed funding of $4.2 million in a round led by Chicago-based crypto-focused VC firm Jump Capital.
Also participating in the latest round are Cadenza Ventures, Blockwall Capital, CMT Digital, Greenhouse Capital, Raba Capital, as well as other investors.
The new funding, according to the company, would be used to strengthen its market position in Nigeria, Africa’s top crypto economy, where all of its customers are situated.
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“We have seen the real difference in financial freedom crypto can make in the lives of our users, and we’re very motivated to extend this to more people on the continent,” CEO Michael Adeyeri, said in a statement. “The full West African corridor has our immediate attention, and we’re also excited about East Africa, particularly Kenya and Uganda. We’re currently prospecting those regions for opportunities to expand safely.”
Why The Investors Invested
Busha’s traction is a major reference point for investors in this round. Since it was launched in 2018, Busha claims it has more than 200,000 users.
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The startup’s business model is also a selling point. Chief Product Officer (CPO) Moyo Sodipo said the company takes pride in “being first in the market to introduce tangible innovations like instant payouts and 24/7 human customer service.”
Peter Johnson, Partner at Jump Capital re-echoed the view held by Sodipo, adding that: “Nigeria and the African continent are one of the most promising places for crypto to make a significant impact in offering financial freedom to millions of individuals. ”
Earlier in November, Cadenza Ventures announced it raised a $50 million early stage venture fund, anchored by Van Eck Associates, with participation from institutions that include Solana, Dapper Labs, WorldQuant Ventures, Mirana, TRON, Lennertz, Babel Finance, Social Leverage and individuals affiliated with Coinbase, Kraken Ventures, Angellist and Norwest Venture Partners. The San Francisco-based fund would target crypto platforms and blockchain technologies globally. It had previously made investments in Rain, Vauld, Lemon Cash, Tulip Protocol and ZEBEDEE.
Based in Frankfurt Germany, Blockwall Capital is a blockchain venture capital firm that runs closed-ended investment funds that give investors access to the new and rapidly developing asset class of crypto assets. The new fund focuses on early-stage equity investments in entrepreneurs that can create practical blockchain applications and thereby bring real value to enterprises. Up to 30 startup enterprises will get growth financing from the venture capital fund.
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CMT Digital is a venture capital firm based in Chicago, Illinois, that invests in seed-stage, early-stage, and later-stage startups in the crypto-asset trading, blockchain, fin-tech, and legal tech sectors. So far, the firm has made over 78 investments since it was founded in 2013.
Nigeria’s Greenhouse Capital is a platform to connect startups, corporates, and investors that are driving innovation in Africa. The firm has mostly invested in fintechs. Investment in Busha is a rare foray into Nigeria’s burgeoning crypto industry.
Based in South Africa, Raba Capital aka The Raba Partnership focuses on entrepreneurs and teams building technology companies. Investment in Busha is also a rare entry for the venture capital firm which has mostly invested in fintech, entreprise and logistics startups.
A Look At What Busha Does
CEO Michael Adeyeri and Chief Product Officer (CPO) Moyo Sodipo founded Busha in 2018. The company just released a new version of its software that allows customers to buy cryptocurrency for less than $1 (550) and includes features like one-click limit orders and automated recurring purchases.
Busha is already expanding into additional West African countries and will launch when its 30-person team is confident that it can both secure consumers and enhance government compliance efforts, according to Sodipo.
Next month and early next year, Busha plans to implement a savings function that will allow users to earn interest on their cryptocurrency, as well as a feature that will allow users to spend cryptocurrencies at chosen online and offline retail stores. The latter is being created in collaboration with the gift card company SureGifts.
Busha intends to use resources from its new investors to give “market-beating prices and deliver more value to its consumers while keeping proactive with compliance and regulatory,” as more Africans enter the crypto world, according to the business.
Charles Rapulu Udoh
RCharles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer