cinetpay, a payment gateway that allows e-merchants and merchants to accept mobile money and other forms of payments in Francophone Africa, has secured $2.4 million in seed funding.
Pan-African venture capital funds 4DX Ventures and Unicorn Flutterwave are investors in the round, and it reflects two particular markers for the pair. Cinetapay is their first investment in the francophone sector.
cinetpay was established by Idris Monthe And Daniel Dindji In 2016 CEO Monthe experienced problems collecting payments at his previous startup, Cinetcore, a site specializing in the sale of domain names online.
“When we launched our website to sell domain names online, we faced difficulty in collecting online payments after creating multiple PayPal accounts that was blocked by PayPal because we were in Africa,” the CEO told Nerdshala.
“But what we incur is that 80% of the population in Francophone Africa has a mobile money account. And 10 to 20% have a bank account and credit cards. We have tried to trace the path of mobile money and payment gateways. decided to make where we gross All mobile money available in Francophone Africa to enable merchants to accept online payments.”
The Ivorian startup serves as an online and point-of-sale payment solution for merchants to process payments from more than 130 different payment operators – mobile-money, bank cards, wallets – in nine French-speaking African countries : Ivory Coast, Senegal, Cameroon, Mali, Burkina Faso, Togo, Congo, Guinea and Benin,
On the platform, merchants need to open an account and then upload their KYC, integrate Cinet’s API and start collecting payments., Each merchant pays an annual membership fee of $20 a year and Cinet collects a commission of 1-1.5% on each transaction.,
Merchants on the platform range from e-commerce platforms and digital public services to insurance companies and schools. since its startOver 12,000 merchants have registered on the platform. However, Month acknowledged that only 400 of them are active. When asked why the company has poor retention rates, he said that most active traders have opened multiple accounts before sticking with one.,
It is also possible that Cinetpay’s numbers are a reflection of the presence of large payment gateways such as MFS Africa and PayPay that target the 562 million registered mobile money accounts in sub-Saharan Africa.
Still, the company has done well on its own. So far, it has processed over 30 million transactions for these 400 active merchants, processing approximately $12.5 million in monthly transactions.
“We have been tracking the Francophone Africa market for some time now, and we have affected by Cinetpay’s ambitious goal is to digitize payments across the region,” said Walter Baddu, Co-Founder and General Partner, 4DX Ventures. “We look forward to partnering with the CinetPay team, along with our longtime portfolio company, Flutterwave, to help drive the next phase of digital payments in the francophone sector.”
Both companies said in a statement that Flutterwave’s participation in this round is a continuation of Unicorn’s partnership with Cinepay that began in 2019. It is also a diversification from Mobile Money Moves, Flutterwave recently signed a partnership with MTN to allow businesses in select countries to receive MTN Mobile Money (MoMo) through the gateway.
Flutterwave CEO Olugabenga “GB” Agboola said the investment in CinetPay is an example of the two’s shared vision to “simplify payments on the continent.”
CinetPay said the seed investment gives it the opportunity to boost its sales and marketing efforts in the markets of West and Central Africa.
Monthe said that despite the size of the company Relatively Smaller than its competitors, its geographic presence, technology, and mission to “simplify payments and make it accessible through all channels” set it apart from other players. At the end, plans to become the leading payment gateway in the next four years.
“Our vision is to be the first payment aggregator in Francophone Africa by 2025. First According to Our geographical presence in 15 countries in Francophone Africa. First According to innovation, first According to market share,” he remarked in a grand manner.