Canza Finance, the Web3 neobank focused on cross-border payments for African startups, has raised $2.3 million in a strategic funding round. The funding, led by Polychain Capital and featuring Protocol Labs, Avalanche’s Blizzard Fund, and others, will aid Canza in obtaining regulatory licenses across Africa and expanding its innovative decentralized finance (DeFi) platform, Baki.
Empowering African Startups
Canza Finance aims to transform cross-border payments for African businesses through Baki, a decentralized finance platform utilizing stablecoins for efficient and cost-effective currency swapping, reducing transaction costs to just 1%.
Backed by Industry Leaders- Polychain Capital and More
The $2.3 million strategic funding round was led by Polychain Capital and saw participation from prominent backers, including Protocol Labs, Avalanche’s Blizzard Fund, 99 Capital, Stratified Capital, Hyperithm, and others. With a total funding of $5.5 million, Canza Finance is poised to advance its mission of fostering efficient cross-border transactions.
Licenses and Regulatory Expansion
Canza Finance plans to utilize the funding to acquire licenses from various financial regulators across Africa. Pascal Ntsama, the Co-Founder and CEO, highlighted the strategic goals, including securing a Money Services Business (MSB) license in the United States, obtaining a Foreign Exchange (FX) license in Nigeria, and acquiring Virtual Asset Licenses from the Financial Service Commission of Mauritius.
Enhancing Cross-Border Payments
Canza collaborates with foreign exchange (FX) agents in African countries, offering a swift and cost-effective solution for businesses to send and receive money. By utilizing stablecoins and introducing Baki’s synthetic FX exchange on-chain protocol, Canza envisions lowering transaction fees to 0.2%, empowering businesses to overcome traditional forex challenges.
Stablecoins and Decentralized Finance
Introduced in November 2023, Baki represents a revolutionary system for digitally exchanging currencies without the involvement of traditional money. By leveraging stablecoins, Canza aims to provide businesses with dollar stability, reducing forex fees and making cross-border transactions more accessible.
Reducing Transaction Costs
Canza Finance‘s revenue model involves a 1% fee on processed transactions. With the introduction of Baki, the startup envisions further lowering transaction fees to 0.2%, fostering a more efficient and cost-effective cross-border payment ecosystem.
Conclusion
Canza Finance‘s successful funding round and strategic partnerships position the startup at the forefront of advancing financial inclusion in Africa. By leveraging innovative technologies and strategic collaborations, Canza aims to empower businesses and lower barriers to cross-border transactions.
FAQs
Q1: How does Canza Finance lower cross-border transaction costs for businesses?
Canza leverages stablecoins and its Baki platform to reduce transaction costs to just 1%, with plans to further lower fees to 0.2%.
Q2: What is Baki, and how does it contribute to Canza’s mission?
Baki is Canza’s synthetic FX exchange on-chain protocol introduced to facilitate efficient and cost-effective currency swapping for businesses, enhancing the overall cross-border payment experience.
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