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Nigerian Blockchain FinTech Startup ZONE raises $8.5 Million Seed

A Nigerian blockchain Fintech, ZONE has done the extraordinary, raising $8.5 million seed. The startup aims to harness blockchain technology to connect every monetary store of value and enable reliable, frictionless, universally interoperable payments.

The region of Sub-Saharan Africa is burdened with the highest remittance costs globally. Even sending $200 to the region has increased in cost; according to the World Bank, the average cost increased from 7.2% in Q2 2022 to 7.9% in Q2 2023.

Appzone Group, previously a fintech software firm, introduced Zone and Qore, its Banking-as-a-Service division, which split into a standalone business in 2022, transforming the market.

“With this transition to Zone, we are utilizing the power of blockchain technology to connect every monetary store of value and enable reliable, frictionless, and universally interoperable payments. In doing this we are building one global network to pay anyone through any means, in any currency, which will ultimately maximize financial inclusion and accelerate economic prosperity for Africa and the rest of the world,” Obi Emetarom, Zone’s co-founder and CEO said.

Zone is a controlled blockchain network created to expedite the acceptance and transactions of digital currencies. Using Africa’s first Layer-1 blockchain, the system reduces transaction costs, enables rapid dispute resolution, and improves payment reliability globally. It also facilitates direct transactions between financial institutions.

The Evolving Trend In Blockchain And Fintech In Nigeria

Over fifteen African institutions and fintech firms, including Access Bank, GTBank, and UBA, have joined Zone, showing growing traction. Zone raised $8.5 million in an oversubscribed seed round led by TLcom Capital and Flourish Ventures to accelerate growth. Prominent blockchain venture capital firms included in the round included Alter Global, Verod-Kepple Africa Ventures, and Digital Currency Group.

“The parent company initially funded the startup. When you separate the traditional business, the natural thing to do is to raise money to continue growth,” Emetarom said.

This funding will fuel Zone’s expansion goals, starting with adding more banks and financial service providers to broaden domestic coverage. Zone raised $8.5 million in an oversubscribed seed round, led by TLcom Capital and Flourish Ventures, to fuel growth. Zone has a very clear goal: to develop into a worldwide payment network.

Ameya Upadhyay, Partner at Flourish Ventures, said, “For the first time in Africa, Zone’s technology enables direct communication in payments. We believe this leap will offer customers a new standard of reliability, speed, and cost efficiency at ATMs, POS, and online.”

The Central Bank of Nigeria granted Zone a license to transfer and process payments in 2022. This allows Zone to use its blockchain network to improve transaction switching and processing services for banks and fintechs.

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