Ezeebit Raises $2 Million to Expand Stablecoin Operations in Africa

Stablecoin and cryptocurrency payment infrastructure company Ezeebit has just closed a seed funding round, raising $2.05 million to boost its growth and get more merchants on board across Africa. This fresh capital will help them speed up product development and expand their reach in key countries like South Africa, Kenya, and Nigeria. They also plan to build stronger partnerships with banks, payment service providers, and telecom companies to grow their presence.

The funding round was led by Raba Partnership, known for backing successful startups like Flutterwave, Stitch, Fuse, and BVNK. Joining them was Founder Collective, who previously invested early in heavy hitters such as Uber, WHOOP, Airtable, and The Trade Desk. Strategic angel investors also participated to support the company’s vision.

This investment comes at a great time for stablecoin operations in Africa, as the continent is experiencing several positive trends. Inflation is still a challenge in some countries, driving more people to turn to stablecoins as a safer way to store and move money. Credit card use is still minimal, only about 4% of adults in Sub-Saharan Africa have credit cards, making digital payments through mobile money and QR codes a popular alternative. Plus, with smartphone use expected to hit nearly 90% by 2030, the number of people able to access these digital finance tools is growing fast.

Ezeebit raises $2 million to expand stablecoin in Africa

Ezeebit lets merchants accept crypto payments easily, with instant settlement in stablecoins and payouts in local currency by the next business day. The company points out that merchants save a lot on fees—1% or less—which is about 68% cheaper than the fees charged for traditional card payments. Their platform also eliminates the risk of price swings in crypto, making it a smoother experience for both sellers and buyers.

Amanda Herson, a general partner at Founder Collective, says the Cape Town-based startup is making cryptocurrency simpler and more useful in places where about half the population doesn’t have a bank account.

Daniel Katz, Ezeebit’s CEO and co-founder, explains, “African merchants often deal with slow and costly payment methods, while many consumers hold crypto for things like remittances and savings but don’t have a safe way to spend it.” He adds, “Our platform bridges the gap between decentralized finance and traditional finance, using a compliant stablecoin settlement layer. This funding gives us the power to build the infrastructure needed to bring millions of people fully into the global digital economy.”

David Frankel, co-founder and managing partner at Founder Collective, says the situation in Africa is remarkable. “Millions have crypto but can’t use it to pay, and merchants need faster, cheaper payment options, but old systems block them. Ezeebit is creating that much-needed bridge. This team combines modern fintech know-how with a deep understanding of the unique market conditions they serve.”

In conclusion, Ezeebit raising $2 million to expand stablecoin operations will make it easier for African businesses to tap into crypto payments, helping drive wider access to better, faster, and more affordable payment solutions across the continent.

Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.