Zone receives $8.5 million seed. Nigerian Fintech startup Zone has just recently secured an $8.5 million seed round to help scale its business. Continue reading to find out more about this breaking development.
Zone Receives $8.5 Million Seed
TLcom Capital and Flourish Ventures spearheaded the latest funding round for Zone, with additional participation from Digital Currency Group, Verod-Kepple Africa Ventures, Alter Global, and Endeavor Catalyst.
CEO Obi Emetarom is thrilled about the funding, viewing it as a validation of the company’s value amidst challenging funding conditions.
Zone is a division of the Appzone Group, established in 2008 initially focusing on banking infrastructure for numerous banks in Nigeria. However, in 2022, the company underwent a rebranding, separating its banking software business into a new entity called Qore, while Zone pivoted towards blockchain-powered payments.
Zone Becoming Africa’s First Regulated and Decentralized Payment Network
Emetarom envisions Zone becoming Africa’s first regulated, decentralized payment network, despite Nigeria’s Central Bank’s mixed stance on cryptocurrencies. Nevertheless, Zone’s blockchain solution has garnered support from numerous stakeholders, with over 15 banks already on board.
With the new funding, Zone aims to connect more financial institutions in Nigeria and pilot its cross-border payment system before 2025.
How Zone Works
Although Zone prioritizes fiat transactions and utilizes blockchain technology to enhance their reliability and speed, it has had to maintain a degree of centralization to comply with regulatory requirements. Emetarom emphasizes the need for a balance between decentralization and regulatory compliance to achieve widespread adoption.
Zone Ambitious Plans for Expansion across Africa
Zone has ambitious plans for expansion across Africa, intending to introduce more blockchain innovations while ensuring regulatory compliance. It emerges as a promising player in the fintech landscape, poised to make significant strides in the industry.
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