As technological ecosystems in Africa, more people from the area land remote jobs with large technology companies and global newly established businesses. But the payment remains a challenge for many of these freelancers and remote workers – they are struggling to open US bills and face slow pricing and payment processes and do not help when their foreign employers use incompatible payment platforms.
Lagos -based Stable It is one of the many African fintechs that have progressed to deal with this problem. Through the retail product, Geegpay, Raenest offers freelancers virtual USD, GBP and EUR accounts to receive payments, manage multi -currency wallets and convert coins. It also provides virtual and natural debit cards that receive multiple coins such as US dollars.
Last March, the company expanded its platform to cover businesses to streamline international remittances with a new trademark, Raenest for businesses. Now the start has raised $ 11 million in Funding of A -Series, led by QED investors, to expand its range throughout Africa.
Developing beyond freelancers
Interestingly, Raenest did not start with freelancers. Victor Alrantalong with co -founders Sodruldeen Mustapha and Richard oyomeHe started the company in 2022 as a record employer (EOR), helping foreign companies pay African officials in accordance with local rules.
But for a few months, the founders realized that the real problem is not in the companies who sent payments – with people struggling to receive them.
“An American company may not care if a payment is delayed by five days, but for someone in Nigeria or Kenya, this is a big deal – especially when converted to local currency becomes another obstacle,” alade, formerly Jumia software engineer And Andla, he told TechCrunch.
Designing from his remote work experience, Alade and his co -founders, who also bring experience in which they work with African fintechs such as Lemfi and Fairmoney, rotate to deal with this pain.
Geegpay quickly attracted with freelancers, but business registrations began to increase as well. The team realized that African companies also needed foreign accounts to rationalize cross -border transactions. “Businesses started asking if they could get fixed bank accounts to simplify payments. Then we started thinking: How big is this opportunity? Who else is making for Africa?” Alade said.
The addition of Business Banking by Raenest could not come in a better time. Around this time, the US -based Fintech Mercury began to limit business accounts from various countries, including departments of Africa. Meanwhile, competition in the EOR area is heated, with important players such as Deel starting to consider the service of Epirus closer.
These events prompted Raenest to support what he saw as the best opportunity: offering African businesses a way to receive and send international payments.
A viable gambit
The bet seems to perform. Since the start of 2022, Raenest has worked over $ 1 billion in payments – an increase of 160% in the last two years – in freelancers and businesses across the continent. Today, more than 700,000 people use the platform to receive payments from world platforms such as upwork, Fiverr and Gusto. They also use it for online purchases and subscriptions.
On the part of business, more than 300 companies are based on Raenest to collect payments from international customers, raise funds from investors and make cross -border payments. Its customer list includes newly established companies such as Moniepoint, Helium Health, Fez Delivery and Matta.
Raenest competes with several Fintech companies that offer multiple currency bills to clients in Africa, including Afriex, Cleva, Fincra, Gray, Verto and Leatherback. Alade argues that Raenest has an advantage because it targets individuals and businesses, as opposed to most players who exclusively serve one of these customers.
The company’s ambitions extend beyond cross -border payments. “We want to create a safe and uninterrupted economic ecosystem for Africans – helping them win, invest and develop their wealth, no matter where they are in the world,” Alade said, implying the upcoming product launches.
Extension plans
Currently, Raenest operates in Nigeria with a license to transfer money. As part of its development plans, the company will seek to deepen its presence in Nigeria and obtain licenses to Egypt, Ghana, Kenya and the US
The company has banking partnerships in the US and the United Kingdom and is also working to secure more in these areas as it escalates. Along the way, the company, which claims to be profitable, aims to attract talent to support its expansion as it brings Geegpay and Raenest for businesses with a single Raenest trademark.
The A series A, which comes after a pre-seed of $ 700,000 and $ 2.6 million, brings Raenest’s total funding to $ 14.3 million.
Lead investor QED, one of the world’s leading Fintech VC companies, steadily increasing its imprint in Africa since 2022. Raenest.
“We firmly believe that by bridging the gap between local and world markets, Raenest will unlock new opportunities for African entrepreneurs, freelancers and businesses, eventually leading more financial empowerment across the continent,” said Gbenga Ajayi and his associate Africa and middle east to QED investors.
Other investors in the round included the Pan -African companies VC Norrsken22, the Ventures platform, the P1 companies and the seeds.
