Africa’s first regulated blockchain network for payments, Zone (formerly Appzone) has announced that it has raised $8.5 million in an oversubscribed seed funding round led by VC firms Flourish Ventures and TLcom Capital.
The raise marks a pivotal moment for Zone as the company continues to build a Blockchain-based decentralized payment infrastructure for financial services providers across the continent. According to a statement shared with Technext, the new funding will enable Zone to further expand the coverage of its network domestically and connect more banks and financial services companies.
Founded in 2008 by Obi Emetarom, Emeka Emetarom and Wale Onawunmi, Appzone began operations by offering custom software development services to commercial banks. It would evolve into providing services in end-to-end automation of lending operations for banks and blockchain switching in 2020.
Obi Emetarom believes that blockchain is the future of financial services payments and other financial services, and the company’s vision aligns closely with that.
In 2022, the Nigerian fintech software provider rebranded to “Zone”, a regulated blockchain payment infrastructure company. The company reportedly has over 20 of the biggest commercial banks, Fintechs and OFIs in Africa already connected to its Layer-1blockchain network.
Read more about this: Fintech software provider, Appzone rebrands to ‘Zone,
The company claims that a significant portion of the fund will be allocated to conducting a comprehensive pilot programme to test the company’s cross-border capabilities scheduled for 2025.
In a recent conversation, CEO, Obi Emetarom told Technext that the new technology (Zone 2.0) will increase transaction processing capacity by 20x. Apart from the speed improvement, he said that the updated infrastructure will be resilient in handling instability and downtime.
For the company, a key priority of the Company is to ensure that it is well-prepared to extend its footprint across Africa to support intra-African and international payments which will bring the company closer to its vision of becoming a global payment network.
Zone has a unique position as Africa’s first regulated blockchain network for payments and has already signed up over 15 of Africa’s largest banks and fintech companies. By harnessing the power of blockchain, its blockchain network delivers reliable, frictionless and universally interoperable payment experiences at scale to financial service providers and their customers.
Investors participation in Zone’s seed raise
The seed funding round was led by VC firms Flourish Ventures and TLcom Capital. Flourish Ventures, an early-stage global fintech venture firm with purpose will provide Zone with a global perspective, networks of industry influencers and extensive Africa fintech expertise, paving the way for expansion into new markets.
UK-based TLcom Capital provides essential local credibility and understanding of the African tech space while leveraging its existing relationships with key decision-makers In Nigeria to establish a strong foundation for the company within its home market.
Other investors in this round include international blockchain-focused VC firms Digital Currency Group (DCG), VKAV (Verod-Kepple Africa Ventures) and Alter Global, each bringing niche sector expertise and credibility. These investments at a time when start-up funding has dried out are a testament to investor confidence in Zone’s mission to connect every monetary store of value and establish a regulated and decentralized global payment infrastructure.
Additionally, the endorsement and investment from Endeavor Catalyst reinforces the company’s status as a frontrunner in Africa’s fintech revolution, highlighting the company’s alignment with the entrepreneurial spirit that drives technological transformation and economic progress.
Similar: Zone 2.0 will support DeFi and digital currencies – CEO
Commenting on the funding round, Obi expressed that the participation of high-quality investors in the round beyond what was needed is a sign of trust in the company’s brand and investor excitement about the opportunity to redefine payment infrastructure in Africa.
“With their support, we are poised to accelerate our mission to connect every monetary store of value and enable real-time payments within and across geographical borders. Zone is committed to staying at the forefront of technological advancement and industry evolution in financial services”, he added.
Speaking on the funding round, Ameya Upadhyay, Partner at Flourish Ventures said:
“We believe this is a fundamental leap that will allow customers to experience a completely new standard of reliability, speed and cost efficiency at the ATM, at POS machines and online. We are excited by the potential for Zone’s technology to be replicated across borders to advance payment innovation globally.”
Similarly, Ido Sum, Partner at TLcom Capital, expressed the investors’ confidence in the startup’s leadership team and the potential of the company’s new technology:
“We are thrilled to partner with Obi Emetarom and Wale Onawunmi, co-founders of Zone, on their journey to build a category-defining fintech company that is using advanced blockchain technology to solve a critical payments system challenge”.