HoneyCoin, a Kenyan fintech startup constructing stablecoin-powered cost rails, has raised $4.9 million in seed funding to push into new African, Latin American, and Asian markets.
Flourish Ventures led the fairness spherical, which additionally included participation from TLcom Capital, Stellar Growth Basis, Lava, Musha Ventures, 4DX Ventures, Antler, and Visa Ventures, the funding arm of the worldwide funds large.
The Nairobi-based startup is betting that its blockchain-powered settlement rails can seize a slice of Africa’s $329 billion cross-border funds market, the place settlement delays and excessive charges are frequent. HoneyCoin’s stablecoin-powered cost infrastructure connects on to banks, cell cash networks, and world cost companions, enabling companies to maneuver funds in hours as a substitute of days at a fraction of conventional prices.
“We have now limitless runway, we’re worthwhile and have been for the previous 2 years,” stated David Nandwa, founder and CEO of HoneyCoin. “Our mission is to construct the working system for cash; the way it’s moved, held, and picked up, no matter medium or geography—identical to Apple redefined computing. This elevate allows us to guide that transformation, throughout Africa and different world markets.”
The fintech claims it processes $150 million month-to-month in transactions, serving 350 enterprise shoppers and 326,000 direct customers. Most of its income comes from B2B settlement and buying providers, with company shoppers paying as much as $2,500 month-to-month to combine its funds API.
Based in 2020, HoneyCoin operates in 15 African international locations, the US, components of Europe, and several other rising markets. The contemporary funding brings its complete capital raised to only over $5 million, together with earlier backing from Flourish in 2021 and 2022, based on Crunchbase. The corporate, which says it has been worthwhile for 2 years, will use the money to rent senior executives, safe extra licences, and broaden into Mozambique, Zambia, Rwanda, Francophone Africa, Latin America, and Asia.
HoneyCoin’s infrastructure settles transactions the identical day, based on Nandwa, utilizing stablecoins to chop cross-border settlement instances from days to hours.
“We’ve constructed a proprietary, stablecoin-powered AI Matching Engine that makes use of the shopper and quantity information we have now to internet off flows throughout each side,” Nandwa defined. “We have now additionally constructed a world colocation community of strategic banks that powers our near-instant to same-day settlements.”
The startup claims its B2B volumes are rising 16% month-on-month, whereas client exercise by way of its Peer app is rising 5% month-to-month. About 60% of Peer transactions are home funds, with 40% cross-border.
HoneyCoin holds Cash Service Enterprise (MSB) and Cost Service Options Supplier (PSSP) licences in Canada, a digital asset service supplier (VASP) licence in Europe, and MSB approval within the US. In Africa, it has obtained Letters of No Objection (LNOs) from regulators in Nigeria, Kenya, and Tanzania, plus direct partnerships with cell community operators and cost service suppliers (PSPs).
It plans to launch a number of new merchandise in Q3 2025 to broaden its expertise and repair choices to companies and customers, together with a stablecoin-backed debit card with Visa; a cross-border liquidity answer for African corporates with Interswitch; a banking-as-a-service (BaaS) product in Ghana, Malawi, and Tanzania; and a software program POS answer for East Africa.
“[HoneyCoin] has the possibility to cement itself because the go-to infrastructure layer for accumulating, changing, and settling funds in any forex throughout B2B cross-border funds into and inside Africa,” stated Efayomi Carr, principal at Flourish Ventures. “The capital will strengthen core infrastructure, deepen financial institution and regulator relationships, and add senior expertise to serve bigger enterprise shoppers.”
Nandwa sees HoneyCoin competing with world and African fintechs corresponding to VertoFX, Nala, Yellow Card, and Cellulant, all constructing cross-border cost options for African markets.
Mark your calendars! Moonshot by TechCabal is again in Lagos on October 15–16! Be part of Africa’s prime founders, creatives & tech leaders for two days of keynotes, mixers & future-forward concepts. Early fowl tickets now 20% off—don’t snooze! moonshot.techcabal.com
Elevate your perspective with NextTech Information, the place innovation meets perception.
Uncover the most recent breakthroughs, get unique updates, and join with a world community of future-focused thinkers.
Unlock tomorrow’s developments right this moment: learn extra, subscribe to our e-newsletter, and turn out to be a part of the NextTech neighborhood at NextTech-news.com
