African FinTech Waza Raises $8 Million to Digitize Cross-Border Payments for Businesses

Despite rising demand for global trade, businesses in emerging markets often face challenges accessing affordable payment solutions and managing liquidity across borders. One startup is looking to change that by streamlining cross-continental transactions for companies in Africa.

Waza, a Y Combinator-backed fintech, has emerged from stealth mode after closing an $8 million seed round that it will use to expand its digital platform for international business payments. The startup developed a payment processing and working capital management tool that helps African enterprises and traders easily pay suppliers globally.

Founded by industry veterans Maxwell Obi and Emmanuel Igbodudu, Waza recently hit $70 million in monthly payment volumes just months after launching its services. The platform currently facilitates transactions between over 500 clients spread across six continents. This includes multinational corporations, import/export businesses, and other fintechs seeking payment APIs.

By leveraging partnerships with global banks and its proprietary infrastructure, Waza aims to offer cheaper and faster settlement times compared to traditional cross-border payment options. The company generates recurring revenue from foreign exchange spreads and modest transaction fees. Funding will support growing its client base beyond current operations in Ghana and Nigeria while potentially developing new trade finance products.

Investors see a sizable opportunity in digitizing the costly and inefficient legacy systems that dominate global B2B payments, especially for the estimated $7 trillion African market. With digitalization gaining ground, Waza hopes to consolidate its position as the leading paytech platform empowering commerce connectivity for businesses across the continent.