Colombian Fintech Company Minka Expands its Operations into Africa

Colombian cloud-based fintech startup Minka has announced plans to expand its operations into Africa.

The first phase of this expansion will see Minka setting up shop in Eastern and Southern African countries, including Kenya, Tanzania, Uganda, Ethiopia, Mozambique, Zambia, and Malawi.

Founded in 2016 in Bogota, Colombia, Minka offers a cloud-based programmable solution that builds payment networks, allowing people to send money between participating banks and other financial institutions.

The company raised $24 million in a Series A funding round in 2022, with investments from Tiger Global Management, Kaszek Ventures, and the FinTech Collective.

Minka’s expansion into Africa follows a successful model it has implemented in Latin America, where it bridges the gaps between central banks, banks, other financial institutions, and clearing houses through shared and connected ledgers.

The company is banking on the similarities in demographics between its home market and the African continent, as well as the latter’s rapidly growing and highly competitive fintech space.

Addressing Financial Inclusion Challenges

In explaining Minka’s decision to enter the African market, CEO Domagoj Rozic emphasized the company’s mission to build more efficient payment infrastructures across the Global South.

“Low levels of financial inclusion, a heavy reliance on cash, and non-interoperable legacy payment systems are just a few of the issues our team in Latin America have successfully overcome, and we believe it is our duty to continue creating solutions that benefit society,” Rozic said.

Colombian Fintech Company Minka Expands its Operations into Africa

Alexander Perko, Minka’s Growth Lead, expressed excitement about bringing the company’s approach to Africa, stating, “We’re excited to bring our story and the benefits of our approach to people in Africa, where we’re building impactful connections between financial institutions of all types and allowing teams to build and connect payment systems in days instead of years.”

Capitalizing on Africa’s Growing Digital Payments Market

As Colombian fintech, Minka, expands into Africa, it follows a trend of Latin American fintech companies making inroads into the continent to capitalize on its growing digital payments market.

In 2022, Brazilian payment company EBANX launched in 11 African countries, while Uruguayan financial technology company dLocal secured payment service provider licenses from the Central Bank of Kenya, the National Bank of Rwanda, and the Central Bank of Nigeria.

With its innovative solutions and a proven track record in Latin America, Colombian fintech Minka is poised to make a significant impact on Africa’s financial landscape, driving financial inclusion and efficient payment systems across the continent.

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