A startup based in South Africa specializing in brand and project management services for fintechs looking to expand into new markets or develop new product verticals has secured $700,000 in pre-seed funding.
The pre-seed round was led by 54 Collective, a venture capital firm with a sector-agnostic focus, and First Circle Capital, which concentrates on fintech investments. Sunny Side Venture Partners and various angel investors also participated in the funding.
The startup, founded by Barbara Woollams and Miranda Perumal, who previously held a director position at Visa, not only offers brand and project management services but also collaborates with payment infrastructure providers to assist fintechs. The funding will be utilized to extend operations to Kenya, Zambia, and Cote d’Ivoire, with a specific emphasis on expanding the reach of their customisable card-issuing product, Scale Execute, created in partnership with Visa and Mastercard.
Recent trends show African fintechs reconsidering card services due to high costs associated with processing payments through multiple partnerships, impacting their profit margins.
Expanding into markets like Cote d’Ivoire is strategic for the startup, given the country’s leading position in card issuance within West Africa, with Ivorian banks issuing approximately 2.4 million cards to customers in 2022.
The CEO expressed confidence in the startup’s future, stating, “With the support of our investors and partners, we are well-positioned to engage more deeply with the ecosystem, build trust with African businesses, and focus on addressing significant challenges in enabling card rails by delivering exceptional service.”
Despite the prevalence of cash as a primary payment method in certain African markets, the startup is banking on the continent’s expanding fintech market, projected to reach $230 billion by 2025. Additionally, card issuance platforms are expected to issue around 35% of all cards used in payments by 2029.
Scale will face competition from other players like Onafriq in the B2B card issuance sector.
One of the investors, Hetal Patel, the chief investment officer at 54 Collective, expressed excitement about the startup’s potential, particularly highlighting the expertise and proactive approach of the female founders.
African tech leaders and global players will be at Moonshot by TechCabal. Tickets are available for purchase.
