BitPesa Raises $2.5 Million to expand operations
BitPesa, Bitcoin’s payment startup, has raised $2.5 million in funding, an amount that will be used to expand its operations further in nations across West and Southern Africa. The company also plans to expand its operations in areas across Europe.
The company announced the completion of a series A round of funding and its plans to venture into new markets. Currently, the company operates in Kenya, Nigeria, Tanzania, Uganda, the DRC, Senegal, and parts of the UK. The company hopes to become a leading payments solution in the UK, Europe, and Africa.
The BitPesa fundraising event was led by Draper CV and other BitPesa investors such as Greycroft LLC, Digital Currency Group, Pantera Management, Colle Capital, Future/PerfectVC, Zephyr Acorn, Blockchain Capital, and bnkToTheFuture. Draper believes that BitPesa has a strong advantage because in has invested in teams, infrastructure, and compliance in various areas of operation.
This development comes barely two years after another BitPesa fundraiser closed $1.1 million funding round led by the Francisco-based Pantera Capital. During this fundraising, other BitPesa investors present were Bitcoin Opportunity Corp, Crypto Currency Partners, Future/Perfect Ventures, and Stephens Investment Management. A section of these funds was used to expand BitPesa’s operations in Tanzania and Uganda as well as acquire revamped websites.
How Bitpesa Works
The digital currency payment system was founded in 2013 with the aim of enabling customers and businesses to send and receive payments from Kenya, Nigeria, Uganda, and Tanzania. Later, the company launched the beta site, a service that allows users to send money to any mobile money platform in Kenya. This product also allows employers to send payments to a bank account or send multiple payments to employees via mobile money.
Since its establishment, the company has continued to evolve in terms of its core services in an effort to offer better services to its customers.
BitPesa allows individuals and businesses to send and receive payments with over 30 currencies. In 2016, the company launched an API to support reasonable pricing and make payments seamless in Africa and other parts of the world.
At present, BitPesa has more than 9,000 users and has overseen over 34,000 transactions.
This payment solution is among those that offer services between Africa and the rest of the world. The BitPesa trade translates into competition in a market that has, for long, been dominated by other service providers who charge exorbitant fees. BitPesa Kenya has continued to grow despite the presence of other key players in the market.
This funding will enable the company to position itself well in the digital payments industry across Africa and other parts of the world.
BitPesa CEO Elizabeth Rossiello stated that the vision is to ensure continued customer acquisition and growth in Africa and beyond. She continued to add that the company is looking to exploit untapped opportunities in existing markets so as to gain complete dominance in areas the company operates in.
As the company expands its footprint in Africa and beyond, it will be interesting to see how competition will determine the direction that various payment companies will take.