Addressing Africa's Trade Deficit with Global Payments

Emerging economies, especially in Africa, face challenges due to trade deficits that create an imbalance in the demand and supply of the US dollar, which dominates global trade. This imbalance leads to increased costs and delays in trade transactions.

• The lack of adequate tech solutions to address the liquidity needs of large enterprises and multinationals further compounds the issue in Africa. Many cross-border payment platforms focus on building consumer-facing products rather than B2B solutions.

Waza: A Fintech Revolutionizing Africa's B2B Payments

Enter Waza, a Y Combinator-backed payment and liquidity platform that addresses the pain points of cross-border payments for businesses in Africa. Waza's mission is to simplify global payments and liquidity management for African businesses and traders, enabling them to manage and pay their suppliers worldwide.

• Waza has secured $8 million in seed funding to fuel its growth and expand its reach within the $7 trillion market.
• The startup's business model targets generating $250 billion in revenue by providing affordable and fast settlement solutions for businesses across six continents.

Capitalizing on a Growing Cross-Border Fintech Market

The cross-border fintech and payments market is experiencing significant growth, with projections indicating it will surpass $250 trillion by 2027. This growth is fueled by fintechs challenging traditional banks, particularly in the B2B sector.

• Waza aims to capitalize on this trend, establishing itself as a leading player in the global payments market, starting with Africa.
• In its first month of operations, Waza processed $280,000 in payment volume. This figure surged to $70 million by May, translating to an impressive annualized transaction volume of $700 million.
• Waza's transaction volumes and revenues, generated through FX spread and a take rate of 0.75% to 1%, are experiencing a remarkable 20% monthly growth.

Catering to Diverse Client Needs in Africa

Waza's services cater to three key client segments in Africa, each with unique needs. These segments are:

• Multinational organizations like US-based airlines operating in Africa with liquidity challenges
• Importers and traders transacting with suppliers from countries like India, China, and the UK
• Other fintechs and developers requiring API infrastructure to build their cross-border payment solutions

Waza's Competitive Advantage in Africa's Payments Landscape

Waza differentiates itself through its focus on affordability and speed of settlement, ensuring businesses can pay their suppliers promptly and efficiently.

• Waza's global banking relationships and partnerships provide a competitive edge, allowing it to offer a cost-effective and reliable service.
• The company's robust control over its payment infrastructure gives it an advantage over competitors, enabling it to provide more affordable solutions.

Founders' Expertise and Vision for Waza's Future

Maxwell Obi, Waza's co-founder and CEO, brings extensive experience from his previous roles in the fintech sector. His time at Sendwave, a remittance startup, sparked the idea for Waza after witnessing the need for a dedicated service for global supplier and vendor payments.

• Obi's co-founder, Emmanuel Igbodudu, is a senior engineer with expertise in leading engineering teams at companies like Revolut, Carbon, Moniepoint, and FairMoney.
• The founders' strong technical backgrounds will be instrumental in Waza's expansion into other trade finance and cross-border payment solutions.
• Waza's long-term vision includes developing a banking product for businesses in Africa, similar to Brex or Mercury, which will include credit or financing options or even a stablecoin banking product for the digital economy.

Funding and Expansion into New Markets

The $8 million seed funding will support Waza's expansion into new markets beyond its current operations in Ghana and Nigeria. The investment comprises $3 million in equity from Y Combinator, Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, and Olive Tree Capital. Timon Capital provided $5 million in venture debt financing, which Waza will utilize to pilot trade financing for its large enterprise clients.

• Timon Capital recognizes Waza's potential and its focus on the significant opportunities in emerging markets.