Fintech company Djamo from Ivory Coast secures $17 million in its recent funding round.
Djamo Raises $17 Million to Bridge the Gap Between Mobile Money and Traditional Banking in West Africa
Djamo, a fintech startup backed by Y Combinator, has announced a $17 million funding round, surpassing its $14 million Series A in 2022. The startup, based in Côte d'Ivoire, aims to become the go-to digital bank for West Africa's emerging middle class.
Djamo offers a range of digital banking services, designed to bridge the gap between mobile money and traditional banking services. The platform allows users to make bill payments and money transfers directly through its app, providing a convenient alternative to traditional banking methods. In addition, it offers savings and budgeting tools to help users manage their finances effectively.
The focus of Djamo is on providing digital banking services to the underbanked population in Francophone West Africa, particularly in Ivory Coast and Senegal. By integrating these services, Djamo aims to reposition itself within the evolving financial ecosystem of Francophone Africa, offering a comprehensive financial management platform that combines the convenience of mobile money with the reliability of traditional banking services.
CEO Hassan Bourgi stated that users are evolving and do not want to use institutions with predatory pricing that are not adapted to the new generation. Djamo plans to expand its product suite for both retail users and small businesses, while avoiding predatory pricing.
The growth of mobile money penetration in Sub-Saharan Africa is slowing, with mobile money penetration in the region at 28% in 2022, according to the World Bank. Many African fintechs rely heavily on mobile money, which lacks access to credit, investments, or long-term savings. Djamo's strategy involves offering affordability, accessibility, and advanced financial tools to cater to the needs of the new generation.
This funding round marks the largest equity round for an Ivorian startup, and Djamo plans to use the funds to expand its operations and continue to innovate in the digital banking space. The company has already doubled its valuation since its last raise, and it is poised to become a major player in the digital banking landscape of West Africa.
In conclusion, Djamo's focus on digital banking services for West Africa's emerging middle class, combined with its commitment to affordability, accessibility, and innovation, positions it well to become the go-to digital bank for the region. By bridging the gap between mobile money and traditional banking services, Djamo is poised to offer a comprehensive financial management platform that meets the needs of the new generation.
[1] Djamo's website [2] TechCrunch [3] Bloomberg [4] Financial Times
- To fully capitalize on the growing demand for advanced digital banking services, Djamo is planning to integrate technology into its platform to enhance user experience and provide more efficient business operations.
- As Djamo strives to become the leading digital bank in West Africa, it intends to leverage the $17 million funding to expand its business reach, focusing on technology adoption and innovative financial tools to cater to the needs of the burgeoning tech-savvy population.
