Thepeer has secured a $2.1 million initial investment headed by the Raba Partnership. The startup is an African tech infrastructure firm linking businesses’ wallets.
The firm obtained $220,000 in pre-seed funding from a few angel investors, including Paystack CTO Ezra Olubi and Edenlife CTO Prosper Otemuyiwa, a year before the startup’s announcement.
Rali cap Ventures, Timon Capital, BYLD Ventures, Musha Ventures, Sunu, and Uncovered Fund are among the investors who took part in Thepeer’s seed round. Chipper Cash and Stitch, two African fintech, also contributed.
Thepeer stands at the nexus of data and finance; it is not a genuine fintech venture. But more than any other industry, fintech was most impacted by the issues Kosisochukwu Chike Ononye and Michael “Trojan” Okoh set out to address when they first founded the startup in August 2021.
Thepeer, like other API-based startups, powers infrastructure mostly for small- to medium-sized finance companies.
According to Thepeer, its APIs offer a distinct network where fintech and companies may integrate various sets of products into their applications and websites to facilitate simple money transfers by their clients.
Clients of companies who link with its APIs, such as Eversend (a cross-border fintech) and Nguvu Health (a teletherapy platform), can send money between the two platforms using identifiers like emails or usernames thanks to Send, the service it began with.
Following Send, Thepeer collaborated with Flutterwave, a unicorn whose API portals for mobile wallets and bank accounts are the most widespread in Africa, and developed its platform to expand its reach. Direct Charge and Checkout are two further B2B2C solutions that were made possible through the cooperation.
Clients of roughly 15 businesses can fund each other’s wallets via Direct Charge. This is how it goes. When using Nguvu Health, there are several ways to fund a wallet, including cards, bank transfers, and Thepeer.
Users of Nguvu Health select from any of the 15 wallets when they choose Thepeer, connect it with their Nguvu Health wallet, and then start a direct charge transaction.
On websites for companies like online grocery and clothes stores, checkout functions similarly. When clients shop online, Thepeer appears as a payment option at the checkout and enables them can use their Bitsika, Eversend, Chipper Cash, and Paga wallets to pay.
Since its introduction, the fintech startup’s average month-over-month transaction increase has been 161%.
Additionally, its monthly transaction volume has increased over 65x to “eight-figure” million dollars since the introduction of Send, a new tool designed to assist businesses in sending money between one another through its dashboard (not the one that consumers see).
Thepeer is the latest in a long line of fintech investments made by Raba Partnership in Africa. Raba is a well-known investor in infrastructure businesses like Flutterwave, Yoco, Stitch, Axis Pay, and OnePipe despite its investments in consumer platforms like Thndr and Djamo.
Applications can connect with separate software parts, operating systems, or microservices using an API, which is a collection of functions.
For many years now, API platforms have grown significantly in Africa. There are connections that enable billions of customers who use these services to transact on a ride-hailing or e-commerce platform, bank, or fintech app; these connections are known as application programming interfaces (API).
It would not be out of line to claim that API platforms will help the continent attain financial inclusion, given their significant role in the development of open banking.
As a result, it makes for a fantastic investment source and is continually growing. Thepeer has benefited from this since it can increase the product and services it offers for a better user experience.
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