Waza, a payment and liquidity platform backed by Y Combinator, has recently emerged from stealth with $8 million in seed money. The startup aims to address the liquidity needs of large enterprises and multinationals in Africa, where there is a shortage of tech solutions in this area. By making it easier for African businesses and traders to manage and pay their suppliers globally, Waza is targeting a $7 trillion market with the potential to generate $250 billion in revenue.
The cross-border fintech and payments sector is currently a hot segment, with the market projected to surpass $250 billion by 2027. Fintechs, particularly those backed by Y Combinator, are increasingly challenging traditional banks in this space, especially in the B2B sector. Waza, which participated in Y Combinator’s winter batch in January 2023, aims to capitalize on this trend and make its mark in the global payments market, starting with Africa.
Since its inception, Waza has seen significant growth. In its first month, the startup processed $280,000 in total payment volume. By May, it was processing up to $70 million in monthly payment volume, equivalent to $700 million in annualized transaction volume. Waza’s transaction volumes and revenues are growing by an average of 20% monthly, thanks to its value proposition of affordability and speed of settlement.
Waza facilitates business payments and liquidity management for multinational organizations, importers and traders, and other fintechs and developers. These three categories have different needs but share a common requirement for cross-border payment solutions. Waza’s competition includes other fintechs like AZA Finance, Verto, and Conduit, which recently entered Africa from Latin America.
The founding team of Waza, led by CEO Maxwell Obi and CTO Emmanuel Igbodudu, has strong technical backgrounds that will be valuable as the fintech expands into other trade finance and cross-border payment solutions. The startup is considering developing a banking product for businesses, similar to Brex or Mercury in Africa. They may also explore credit or financing options, as well as a stablecoin banking product for the digital economy.
To fund these initiatives and expand into new markets, Waza recently raised $8 million in seed funding. This includes $3 million in equity from Y Combinator and several other investors, as well as $5 million in venture debt financing from Timon Capital. The investment will enable Waza to pilot trade financing for its large enterprise clients and enter new markets beyond Ghana and Nigeria, where it currently operates.
Chris Muscarella, managing director of Timon Capital, expressed confidence in Waza’s potential, stating that the team has deep experience in cross-border flows and is pursuing one of the biggest opportunities in frontier markets. With its innovative approach to addressing liquidity needs in Africa and its strong growth trajectory, Waza is poised to make a significant impact in the global payments market.
