A Nigerian-based crypto startup, Yellow Card Financial, has closed a $40 million Series B funding round for its expansion across Africa.
Yellow Card Seeks Crypto Adoption in Africa
The African crypto exchange is the beneficiary of the U.S-based Polychain Capital funding initiative.
Polychains’ Pan-African capital injection began in August 2021 as a Series A funding round. However, at that time, Yellow Card had secured about $15 million from investors. It has now raised more than $57 million to top the chart as the most funded African crypto firm.
The latest funding phase sees participants like Third Prime Ventures, Fabric Ventures, The Raba Partnership, and others.
Moreover, the latest funding will enable Yellow Card to continue its business growth drive. In addition, it will also allow the firm to expand its presence across the continent by forming a strategic partnership with others in Africa.
Chris Maurice, Yellow Card’s co-founder, revealed that the funding shows the partners’ confidence in the company’s vision. The team and its product have shown the ability to breeze in and out of the African continent, and the investors have acknowledged this with their funds.
Maurice added that Africa has a high appetite for digital assets and is not going away anytime soon.
The fundraising initiative came amid the crypto winter, which has pushed many crypto businesses to the brink of bankruptcy. Many crypto exchanges have cut their staff sizes to stay in business.
According to Polychain Capital’s Will Wolf, Yellow Card has one of the best teams in the African crypto space. What the firm has done is a glimpse of what is to come as more Africans embrace cryptocurrency.
Wolf added that Polychain’s team is impressed with how Yellow Card adjusts and adapts its operations to leverage the opportunities in the sector.
Launched in 2019, the Nigerian crypto firm is currently operating across 21 countries within Africa. The company’s steady rise has seen its customer base increase to more than one million in over three years.
Africa’s Crypto Market Growth
Among developing countries, Africa is leading the crypto adoption index. And in terms of market size, Nigeria occupies the second spot behind South Africa. However, there is a difference between how the two countries use digital assets.
South Africa’s crypto adoption is primarily an alternative investment. While in Nigeria, crypto is used chiefly for savings due to the dwindling value of the country’s currency, the Naira.
However, the African continent occupies less than 1% of the spot market and derivatives trading on a broader scale. South Africa’s adoption and use of cryptocurrency are unmatched by all African countries.
Africa has a prospect in crypto, given its strong adoption rate. Africa’s crypto adoption is telling, considering its weaker economic indexes caused by weak currencies. The younger generation of more tech-savvy Africans is driving the narratives around crypto adoption.
Notwithstanding the risks associated with using cryptocurrency, Africa is just beginning to reap its benefits.