Elevate, formerly known as Bloom, is a fintech startup from Sudan that aims to help Sudanese people protect their wealth. The startup was accepted into Y Combinator in 2022, making it the first-ever startup from Sudan to participate in the prestigious accelerator program. The founders of Elevate have impressive track records at companies like Amazon, Meta, IBM, and Goldman Sachs.
Initially, Elevate focused on building a pan-African neobank that would offer high-yield savings accounts, free foreign exchange (FX), and digital banking services based on the US dollar. This was in response to the prevalent issue of inflation and currency devaluation in the region, particularly in East and North Africa. According to the IMF, the sub-Saharan region experienced devaluations of 8% in 2022-2023, with some countries seeing depreciation of over 40%.
However, Elevate went through a major political upheaval in Sudan, which led to a pivot in their business strategy. The founders discovered a significant user demographic for their USD vision: freelancers and remote workers. These individuals often faced challenges in facilitating payments from international employers and online platforms, particularly due to excessive fees. Elevate realized that offering US-based USD accounts could solve this problem and provide additional benefits such as FDIC assurance.
Further political instability in Ethiopia and the outbreak of conflict in Sudan prompted Elevate to reevaluate its target markets. The fintech chose Egypt, Pakistan, the Philippines, and Bangladesh as its new markets due to the large population of freelancers and remote workers in these countries. Elevate aims to provide low-cost FX transfers and drive down FX rates similar to what Wise has done.
Since its launch earlier this year, Elevate has already signed up over 150,000 people across its new markets. The fintech generates revenue from net interest income, FX, and card interchange. It plans to launch savings and investment products in the coming months and is nearing profitability with enough funds in the bank.
To fuel its expansion into markets like Indonesia, South Africa, and Turkey, Elevate recently raised a new $5 million pre-Series A round, with 80% in debt, from Dubai-based investment fund Negma Group. Despite the ongoing conflict in Sudan, Elevate remains committed to the region and believes that freelancers and remote workers will play a crucial role in helping rebuild the country’s economy.
In conclusion, Elevate’s journey from being accepted into Y Combinator to its pivot and expansion into new markets demonstrates its resilience and adaptability. The fintech aims to provide valuable financial services to freelancers and remote workers in emerging markets, addressing their pain points and offering them secure and cost-effective solutions.