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Kotani Pay Secures $2M Pre-Seed Funding to Revolutionize Cross-Border Crypto Payments in Africa

Kotani Pay Secures $2M Pre-Seed Funding by web3oclock

The world is changing rapidly, and technology is playing a major role in shaping the future of finance. One of the most exciting developments in recent years is the rise of cryptocurrency and blockchain technology. These innovations have the potential to transform how we send and receive money, especially in regions like Africa where access to traditional banking services can be limited. In a recent breakthrough, a Nairobi-based startup called Kotani Pay secured $2 million in pre-seed funding to drive offline cross-border crypto payments in Africa. Let’s dive into what this means and how it could change the game for millions of people.

The Problem: High Remittance Costs in Africa

Sending money across borders, also known as remittance, is a lifeline for many families in Africa. It’s a crucial source of financial support, often used for education, healthcare, and everyday expenses. However, there’s a significant challenge: the cost of sending money across borders is still too high. In fact, it’s above the United Nations sustainable development goal of 3%. Sub-Saharan Africa, in particular, faces an average remittance cost of about 7.8%.

Imagine you’re working in a different country and want to send money back home to your family. The fees and exchange rates can eat up a significant portion of your hard-earned money before it reaches your loved ones. This is where Kotani Pay comes in to make a difference.

The Solution: Kotani Pay’s Innovative Approach

Kotani Pay, founded in 2020, aims to tackle this problem head-on. They’ve developed a groundbreaking solution that allows people to access blockchain technology to send and receive money without needing an internet connection or a traditional bank account.

Here’s how it works: Kotani Pay uses a technology called Unstructured Supplementary Service Data (USSD). This technology enables users to perform transactions using simple codes, even on basic mobile phones. It’s like sending a text message to access financial services. With Kotani Pay, you can withdraw digital assets as local fiat currency, making it incredibly user-friendly.

The company has continually improved its offerings. They now incorporate decentralized finance (DeFi) elements into the USSD interface, adding more versatility to their services. This means that not only can you send money, but you can also participate in DeFi activities like lending and borrowing without the need for a smartphone or internet connectivity.

The Power of Celo Dollars

To make their services even more accessible and stable, Kotani Pay operates with Celo dollars (cUSD), a stablecoin built on the Celo Blockchain. What makes cUSD special is that it’s pegged to the value of the US dollar. This helps users avoid the volatility that’s often associated with cryptocurrencies.

Expanding Horizons: Kotani Pay’s Ambitious Plans

Kotani Pay’s success is not just about solving a problem; it’s about making a lasting impact. After two years of providing their services in Kenya, Ghana, Zambia, and South Africa, they’re setting their sights on further expansion. With the $2 million pre-seed funding they’ve secured, Kotani Pay plans to launch their services in Rwanda, Senegal, Ivory Coast, Tanzania, and Nigeria. This expansion will bring their innovative solution to even more people who desperately need affordable cross-border payments.

But Kotani Pay doesn’t stop there. They’re not content with just sending money. The company has ambitious plans to introduce new products to their portfolio. After acquiring the Nigerian fintech startup Fuhlstack, Kotani Pay intends to roll out Money Ledger, a Ledger-as-a-Service solution, and Reconset, a Reconciliation-as-a-Service solution. These additional offerings will further empower users with financial tools and options.

Why This Matters?

Kotani Pay‘s journey is not just a success story for a startup; it’s a glimmer of hope for millions of people in Africa and beyond. By reducing the cost of cross-border payments and providing access to blockchain-based financial services, they are making a tangible difference in people’s lives. This innovation has the potential to improve financial inclusion, reduce poverty, and drive economic growth in the region.

It’s also a testament to the power of technology and innovation. In a world where connectivity is often taken for granted, Kotani Pay’s ability to operate offline is a game-changer. It shows that with determination and creative thinking, we can bridge the digital divide and bring the benefits of the digital age to everyone, regardless of their circumstances.


In conclusion, Kotani Pay’s $2 million pre-seed funding is not just a financial milestone; it’s a milestone in the journey towards more equitable and accessible financial systems. It’s a reminder that technology can be a force for good, transforming lives and creating opportunities where they are needed most. As they expand their services and introduce new products, Kotani Pay is poised to continue making waves in the world of cross-border payments and financial inclusion. Africa and the world will be watching, and we can all look forward to a brighter, more inclusive financial future.


1. What is Kotani Pay’s main mission?

Kotani Pay’s primary mission is to revolutionize cross-border payments in Africa by leveraging blockchain technology. They aim to reduce the high remittance costs faced by many Africans and provide a user-friendly, offline solution that allows people to send and receive money without the need for an internet connection or a traditional bank account.

2. How does Kotani Pay work with cryptocurrencies?

Kotani Pay operates with Celo dollars (cUSD), a stablecoin on the Celo Blockchain that is pegged to the US dollar. This stablecoin ensures that users can conduct transactions without worrying about the price volatility often associated with cryptocurrencies, making it a reliable choice for cross-border payments.

3. What are Kotani Pay’s expansion plans?

Kotani Pay has ambitious expansion plans following their $2 million pre-seed funding. After successfully offering their services in Kenya, Ghana, Zambia, and South Africa, they intend to extend their reach to Rwanda, Senegal, Ivory Coast, Tanzania, and Nigeria. Additionally, they plan to introduce new financial products like Money Ledger and Reconset, further enhancing their offerings.

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