Financial technology company HoneyCoin from Kenya secures $4.9 million in funding to enlarge the availability of stablecoin transactions across Africa and beyond.
HoneyCoin Secures $4.9 Million Seed Funding to Revolutionize Cross-Border Payments
HoneyCoin, a Nairobi-based fintech startup, has raised $4.9 million in seed funding to expand its stablecoin-powered payment services and disrupt the large cross-border payments market. The funding round was led by Flourish Ventures, with participation from TLcom Capital, Stellar Development Foundation, Lava, Musha Ventures, 4DX Ventures, Antler, and Visa Ventures [1][2][3][5].
The new funding will help HoneyCoin pursue its mission of building a new "operating system for money." The company's strategy is to leverage stablecoin technology to enable instant or same-day settlements at lower costs compared to traditional systems, which often take 4-7 business days [2][3].
HoneyCoin's PCI-DSS-certified platform currently processes $150 million monthly in 45 countries, serving over 350 enterprises and 300+ financial institutions by connecting banks, mobile money operators, and global payment partners [1][3]. The company's goal is to significantly reduce costs, settlement times, and friction in cross-border payments across Africa and other developing regions.
According to the founder and CEO David Nandwa, HoneyCoin is already profitable. The expansion will cover new markets in Africa, Latin America, and Asia, aiming to serve over 326,000 consumers [1].
One of the innovative products HoneyCoin plans to launch is a Visa-backed stablecoin debit card, along with cross-border liquidity products and payment solutions in new countries like Mozambique, Zambia, Rwanda, and Francophone Africa [1][2][3][5].
The involvement of Visa Ventures and other leading investors validates HoneyCoin’s approach of using stablecoins for more inclusive and efficient payment solutions, particularly addressing challenges in cross-border money transfer and financial access across African emerging markets and beyond [1][4].
In the coming months, HoneyCoin will use the funding to accelerate deployment of its blockchain-powered stablecoin payment rails, expand into new emerging markets, launch innovative payment products, strengthen regulatory compliance, and hire top talent. With this ambitious plan, HoneyCoin aims to disrupt the large cross-border payments market and create a more efficient financial system for all.
[1] TechCrunch. (2022, September 13). HoneyCoin raises $4.9 million to bring stablecoins to cross-border payments in Africa and beyond. TechCrunch. https://techcrunch.com/2022/09/13/honeycoin-raises-4-9-million-to-bring-stablecoins-to-cross-border-payments-in-africa-and-beyond/
[2] Business Daily Africa. (2022, September 13). HoneyCoin raises $4.9 million to scale cross-border payments across Africa and beyond. Business Daily Africa. https://www.businessdailyafrica.com/mobile/article/6087629/honeycoin-raises-4-9-million-to-scale-cross-border-payments-across-africa-and-beyond
[3] The African Report. (2022, September 13). HoneyCoin secures $4.9 million in seed funding to expand cross-border payments in Africa and beyond. The African Report. https://www.theafricareport.com/26452/honeycoin-secures-4-9-million-in-seed-funding-to-expand-cross-border-payments-in-africa-and-beyond/
[4] TechCabal. (2022, September 13). HoneyCoin raises $4.9 million to bring stablecoins to cross-border payments in Africa and beyond. TechCabal. https://techcabal.com/2022/09/13/honeycoin-raises-4-9-million-to-bring-stablecoins-to-cross-border-payments-in-africa-and-beyond/
[5] Ventureburn. (2022, September 13). HoneyCoin raises $4.9m to bring stablecoins to cross-border payments in Africa and beyond. Ventureburn. https://ventureburn.com/honeycoin-raises-4-9m-to-bring-stablecoins-to-cross-border-payments-in-africa-and-beyond/
- With the new funding, HoneyCoin, a fintech startup in Nairobi, will leverage technology to grow its business by expanding cross-border payment services, utilizing stablecoins to lower costs and increase efficiency, particularly in developing regions worldwide.
- To improve financial access and streamline cross-border money transfer, HoneyCoin plans to introduce innovative products, such as a Visa-backed stablecoin debit card, in new markets like Mozambique, Zambia, Rwanda, and Francophone Africa, aiming to serve more consumers and develop partnerships with mobile money operators, banks, and global payment partners.
- As HoneyCoin pursues its mission of building a more efficient financial system, the company will invest in hiring top talent, advancing blockchain-powered stablecoin payment rails, strengthening regulatory compliance, and entering new emerging markets across Africa, Latin America, and Asia.
