last february, Djamo Announced that she got He was accepted into Y Combinator, the first from Ivory Coast. Months later, the two-year-old fintech raised $14 million in funding from the popular accelerator, as well as from three anchor investors — Enza Capital, Oikocredit, and Partech Africa — and other co-investors, including Janngo Capital, P1 Ventures, Axian, and Launch Africa.
As with most fintech companies across Africa, Djamo was launched by Regis Bamba And the Hassan Bourqi In the past year, it has been providing financial services to the unbanked and unbanked population. Its focus is on francophone markets where less than 25% of adults have bank accounts. One of the reasons for this is that banks focus on affluent clients and those they consider profitable for business. But as banks slowed down, mobile money from the region’s telcos filled the gap, and in the past 10 years, their wallets have reached more than 60% of the population—evidence of just how many millions of indigenous francophones were hungry for financial services.
Today, this mobile money infrastructure and access allows startups like Djamo to build on existing payment infrastructure to democratize financial access across the banking and mobile money spheres. The Djamo app enables bank and mobile money interoperability, meaning its customers in Ivory Coast can send money from their bank accounts to mobile money wallets and vice versa; It has taken advantage of this characteristic to build a complete suite of financial services.
Djamo’s first product is a Visa-backed debit card that allows users to make online purchases on sites like Amazon, Alibaba, or Netflix. Other products include virtual accounts for peer-to-peer transactions, a product for receiving payroll, and an autosave product that provides guidance on clients’ financial goals. codaAnd the TildaAnd the PiggyVestAnd the TimeBank And the Koa are some examples of similar products across Africa.
“Before Djamo, it was difficult for the average customer to get paid digitally because it was not integrated into the banking system,” CEO Borghi told TechCrunch over the phone. “We found the right partner to launch this product and any company can pay employees with a Djamo account. When you look at Djamo, along with other products, we want customers to be able to better manage their money and help them plan for their future. We don’t necessarily have to digitize money like mobile wallets We are here to work on the personal financial side.”
Customers see so much value in the different use cases that Djamo has collected so far that the fintech still relies on word of mouth to scale across Ivory Coast, according to Bamba, the company’s chief product officer. The platform has currently registered more than 500,000 customers, a more than 5x increase from the 90,000 customers Djamo joined as of February 2021.
“In our area, users pay among the highest fees in the world but don’t always receive proper service in return, and that can be very frustrating. The only thing we want to achieve is to offer a product where customers get real value for their money,” said the CPO. The app was naturally growing like crazy, and getting such numbers in a market like this in such a short period, is proof that we’re proving the overall user experience and building something that’s really relevant for users.”
While they did not provide an update on the 50,000 monthly transactions recorded during February interviewThe founders say the fintech platform has processed more than $400 million since its inception. Djamo is also seeing revenue growth of 20% to 25% month over month, driven by an adjustment to its pricing plan that includes a free option and two premium options with different services: $2 per month and $3.5 per month. They say these options are 80% cheaper than other bank accounts offered by financial institutions – including microfinance banks that Djamo sees as direct competitors due to their adoption of digital channels to provide financial services – in Ivory Coast.
Borghi said that 60% of Djamo’s customers had never used a Visa debit card before joining the platform. It’s an act the CEO is proud of and considers crucial to Djamo’s bid to make financial services more accessible to the masses, including those outside of Ivory Coast. The $14 million in funding, which it claims is the largest equity round ever for a startup in Ivory Coast, will help the startup advance to two more countries across Francophone Africa before the end of next year and expand its product offering to include investments and lending.
Speaking about the investment, Tejan Diem, General Partner, Partic Africa, said, “Francophone Africa offers a large integrated market, with [a] Rapidly growing demand for frictionless services from a new group of young people with digital assets. We are excited to join forces with high caliber local investors who bring sectoral and regional expertise to enable Djamo to seize this opportunity.”