Digital bank PaySika secures US$349,620 startup capital to begin its operations

AFRICA – PaySika, a digital bank focusing on Francophone Africa, has received startup capital of 300,000 euros (US$349,620).  

The activity marks the neobank’s first fundraising effort since its inception in February 2020. 

The company, which was co-founded by Cameroonian Roger Nengwe and his colleague Stezen Bisselou, intends to use this funding to “attract new additional profiles and continue its development by creating more fluid, safe services that fulfill user expectations.” 

It hopes to begin operations in the first quarter of 2022, with the help of a consortium of French, British, and Nigerian investors. It will first deploy in Cameroon and Gabon, the two countries selected to test its solution, before moving on to Benin. 

The startup, which claims to have received 20,000 pre-registrations in its pre-launch phase, primarily targets underbanked and underserved people that are underserved by traditional banking services. 

Only 20% of the population in French-speaking Africa has access to banking services, according to PaySika data.  

With the widespread use of mobile money and smartphones in the region, many neobanks, such as PaySika, have decided to develop mobile banking solutions in order to attract these customers. 

Sparkle, a two-year-old digital bank in Nigeria, recently raised US$3.1 million to expand its operations in the country.  

Last August, its fellow country startup Kuda announced the raising of US$55 million to expand in Africa. South Africa’s TymeBank also raised US$109 million in February this year. 

PaySika is a fintech startup developing mobile and web-based banking solutions for Africans. The company stands out among other services in existence by providing its payment solutions over the web, mobile applications, and messaging services apps like Messenger, Whatsapp, and Telegram. Of the number of pre-subscribers, over 90% are young people aged 18 to 35. 

Sparkle, a two-year-old digital bank in Nigeria, recently raised US$3.1 million to expand its operations in the country.  

Last August, its fellow country startup Kuda announced the raising of US$55 million to expand in Africa. South Africa’s TymeBank also raised US$109 million in February this year. 

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