Local Investors Back Pan-African Fintech, PayDay, In A $1m Pre-seed Funding Round
A host of African venture capital firms as well as angel investors have backed Payday, a Pan-African fintech startup, as it secured $1 million to develop what the company claims would be Africa’s “PayPal.” The investors include LofyInc, Microtraction, Magic Fund, Ventures Platform, Voltron Capital, CcHub Syndicate, Helicarrier Inc, Greencap Equity, Midlothian Angel Network, Emergence Capital, Olugbenga Agboola (GB), Charles Odita, Eke Eleanya, Adegoke Olubusi, Edmund Olotu (Bloc), Prosper Otemuyiwa (Eden), Dimeji Sofow.
With the funding, the startup plans to establish itself in Africa, preferring Rwanda as its local headquarters.
“Payday’s continental ambition will benefit from KIFC premier Pan-African financial network. The number of African and international investors supporting Payday is a recognition of Mr. Ori’s innovative solution developed from Rwanda and it illustrates the attractiveness of Kigali International Financial Center as a new home for fintech in Africa,” said Ntoudi Mouyelo-K, the Chief Investment Officer (CIO) of Rwanda Finance Limited, the agency in charge of the promotion and development of Kigali International Financial Center (KIFC), welcoming the establishment of Payday in Rwanda.
Why The Investors Invested
“Payday’s solution is extremely timely and it backs up Africa’s agenda of a single market. Making it seamless and easy to pay people in their local currency and through multiple checkout options is a strong boost for AfCFTA” — ‘Bosun Tijani, co-founder and CEO, Co-Creation Hub
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Temi Awogboro, General Partner at MAGIC Fund said “Magic is delighted to be an early backer of Favour and the Payday team in achieving their audacious vision of enabling swift borderless online payments services for Africa, thereby connecting its users with vast opportunities around the world. This aligns with our founders-backing-founders thesis and we are excited by the opportunity to support the team as they positively disrupt the space.”
“Africa is home to some of the most talented and ambitious entrepreneurs we see in the world today, and they are solving problems for one of the biggest markets on the planet. Sending money remains complicated, time-consuming and expensive but we believe Payday Africa has the vision to liberate Africans and the global diaspora to send and receive money quickly and affordably” says Sunil Sharma, Managing Director of Techstars Toronto.
Ventures Platform said “We are thrilled to partner with Payday as they seek to ease the difficulty with moving money around Africa and across the world; this is even more critical as remote work opportunities continue to grow for young Africans” — Kola Aina, General Partner, Ventures Platform.
“Payday is really breaking down walls and barriers across Africa. This is a company that I believe will have massive growth, connecting the rest of the world to Africans and opening up many channels of commerce and payments” — Gossy Ukanwoke.
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A Look At What The Startup Does
Payday was founded in May 2021 by Nigerian Favour Ori, who also serves as its CEO. The beta test began in June 2021, with a cold launch in July. Payday had processed over $1.4 million in transactions within three weeks of its start.
Sending and receiving money internationally, getting paid by overseas companies and clients, issuing Virtual Mastercards, and paying tuition and other expenses in the United States, Canada, and the United Kingdom are just a few of Payday’s services.
Charles Rapulu Udoh
Charles 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