FlexID Technologies (previously FlexFinTx), a Singapore-based blockchain startup, has inked a Simple Agreement For Equity (SAFE) with the Algorand Foundation to further develop and scale their Self Sovereign Identity (SSI) technology. The business intends to make its decentralized digital identity network available in emerging nations, where it is estimated that over one billion individuals lack formal identification.
The Algorand Foundation funding is under the Impact category, which highlighted FlexID as a critical accelerator for global financial inclusion. The funding agreement is a first for the Zimbabwean start-up ecosystem. This financing comes on the heels of Flex ID’s Algorand Foundation Development Award, which the team received in 2020.
Read also Nigerian Fintech Startup Flex Finance Secures Pre-seed Funding
FlexID was founded by Victor Mapunga, a Zimbabwean serial technology entrepreneur, out of anger with a banking system that excludes those without identity documents. Mapunga, like the other 400 million Africans who lack identity cards (IDs), was unable to open a bank account due to the time-consuming documentation and identity requirements.
“Identity is foundational to modern-day commerce. Without an ID, one cannot participate in the economy even at the most basic levels such as access to basic telco services, mobile money and banking,” laments Mapunga who is also the CEO of FlexID.
The founder added: “Without an ID, education and healthcare become extremely difficult to access. On the other hand, the shambolic national records further increase the cost of doing business. With FlexID, even the informal sector can transition from an isolated view to a formalized economy. Farmers can easily access credit and inputs.”
A Look At What The Startup Does
According to FlexID, the startup is essentially building a decentralized marketplace of people. The human is the API you communicate with, and that form of communication can be commerce, education or health-related services. FlexID will build a stack of credentials one after the other allowing social mobility to occur and this will all happen on the Algorand Blockchain. The startup’s platform opens up access to the African market that was not previously available.
Read also Viva Technology and IFC Reveal Top 45 Most Innovative Startups In Africa
Incorporating the Algorand blockchain technology
FlexID, which became the first Zimbabwean start-up to be selected as a World Economic Forum Technology Pioneer, will use the Algorand Blockchain for its decentralized key management system, and to later perform financial transactions. According to FlexID CTO, an MIT trained software engineer, Kudzai Zharare, the startup “will perform credential issuance and verification on-chain, allowing a completely decentralized Layer 2 which puts the user in control. The Algorand blockchain allows FlexID to achieve this feat because the chain is the only one that has truly solved blockchain trilemma challenge and has experienced zero downtime since its mainnet launch in 2019,” added Zharare.
Algorand solves the blockchain trilemma problem:
- Security (this is identity and must be highly secure),
- Scalability (FlexID plans to handle billions of transactions daily), and
- Decentralization (A platform like this cannot scale whilst it is centralized.)
The Algorand Ecosystem is also arguably the world’s most developed blockchain ecosystem which is now getting more recognition. Just recently, Algorand was named the official blockchain partner for FIFA, the world’s football governing body. According to Mapunga: “There are people out there who watch football but lack financial services. What Algorand has done will allow even people in the most remote areas to transition using platforms like FlexID, and we are excited to be building in such a vibrant ecosystem.”
Read also Nigeria’s Bridgecard Raises $440K To Aggregate Payment Cards Into One
FlexID will also invest in integrating its platform with existing Algorand dApps including those in DeFi and NFTs to allow flawless mobility across the entire ecosystem.
“We are committed to funding those individuals and entrepreneurs dedicated to using our blockchain as a tool for financial inclusion, and for profound social and environmental impact. FlexID is a perfect example of passionate problem solvers who are using this technology to give the most marginalized people in the world access to a whole host of financial services. This kind of inclusion will help generate revenue and stability for many in the years to come.” — Matt Keller, Director of Impact and Inclusion, Algorand Foundation.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh