Y Combinator’s Djamo Raises $17M for Expansion in West Africa
Hey Digital Banking Fanatic!
Djamo, an Ivory Coast-based digital banking startup, is building momentum in Francophone West Africa. Unlike most FinTechs that bigger markets like Nigeria, Egypt, or South Africa, Djamo is scaling in its home country and Senegal, two markets where financial services remain largely underdeveloped.
Now serving over 1 million customers, the digital bank has raised $17 million to deepen its product offering and expand services for small businesses. The fresh funding follows a $14 million Series A in 2022.
While the latest valuation remains undisclosed, Co-Founder & CEO Hassan Bourgi ays it has doubled since then. Djamo also supports 10,000 small businesses alongside its retail users, many of whom started as retail users.
Bourgi and Régis Bamba, Co-Founder, CPO & CTO, launched Djamo in 2020 to address a fundamental gap in financial access. In French-speaking Africa, traditional banks have long catered to high-income clients, while most of the population relies on mobile money for transactions.
Mobile money has been instrumental in driving financial inclusion—28% of adults in Sub-Saharan Africa had an account in 2022, according to the World Bank—but it also has its limits. Djamo aims to bridge that gap by offering a broader range of financial tools.
Since launch the startup has expanded beyond offering cards and P2P transfers, by introducing savings vaults, investment products, and salary-linked accounts. Bourgi highlights salaries as a key growth area: currently, only 5–10% of users receive salaries through Djamo, but the goal is to reach 50%.
For the small businesses, Djamo provides tools for merchants to accept and manage payments, including bulk transfers, payment links, and QR codes.
Djamo's revenue come from merchant transaction fees and a premium subscription, used by 25% of users. Plans to introduce credit products and interest-bearing savings accounts as Djamo secures the necessary licenses. Since its launch, the FinTech has processed over $4.5 billion in transactions and grown revenue fivefold since 2022.
Scroll down for more interesting Digital Banking industry news updates and I'll be back in your inbox on Monday! 👇
Cheers,
Stay ahead in FinTech! Subscribe to my Daily FinTech Newsletter for daily updates and breaking news delivered straight to your inbox. Get the essential insights you need and connect with FinTech enthusiasts now!
DIGITAL BANKING NEWS
🌍 Y Combinator neobank Djamo raises $17M with 1M users across Francophone Africa to expand its product suite for these retail customers and the thousands of small businesses it has onboarded in the last two years. Keep reading
🌎 Bitso strengthens consumer strategy with the appointment of Alexandre Mehrdad as GM of its Bitso Retail Unit. Alex joins Bitso to lead a renewed strategy that will position the company as the choice for those who want to build and manage their wealth with simple and secure products and services powered by crypto and blockchain technology.
🇸🇬 Aspire secures license to launch investment service. This allows Aspire to offer regulated investment solutions for businesses in Singapore. With this license, it plans to launch Aspire Yield, an investment solution integrated into its business account platform.
🇬🇪 TBC Bank Uzbekistan secures $20 million in debt financing. The funds will be used to further expand TBC UZ’s lending efforts and promote financial inclusion in Uzbekistan, with a focus on expanding the digital bank’s offering for Uzbekistan’s small and medium-sized enterprises (SMEs).
🇸🇪 Swiss FinTech Teylor snaps up some Grenke Factoring Businesses. The deal only includes Grenke’s factoring units in Germany, the UK, Ireland, Poland, and Hungary, Teylor said in a statement. The FinTech ultimately intends to acquire the company’s Italian and Portuguese entities at a later stage, though.
🇬🇧 Wise shares up after reporting growth for the financial year. The company reported 22% growth in cross-border volumes and a 16% surge in underlying income to £1.36bn. Also, it announced it would expand its programme of share purchases into its employee benefit trust by acquiring historical stock-based compensation grants.
🇳🇬 JP Morgan sets to move into merchant banking in Nigeria. This move promises to bring world-class expertise and innovative financial solutions to Nigeria’s burgeoning corporate and institutional clients. Keep reading
🇺🇸 Plaid completes new funding round of $575mn but finds valuation cut in half to $61bn. Most of the proceeds from the fundraising will go towards paying the tax bill for employees whose restricted stock units are being converted to common stock in the company.
🇧🇷 Nubank has started offering a new type of private payroll-deducted loan "Crédito do Trabalhador" (Worker's Credit), aimed at providing workers in Brazil with easier access to credit. The loan can be guaranteed by a worker’s FGTS balance or severance pay, allowing financial institutions to offer lower interest rates.
🇬🇧 ClearBank to provide GBP clearing services to Kraken. ClearBank will provide Kraken’s clients seamless on and off ramping, as well as the additional security due to its deposits being held at the Bank of England. Also Numeral has been certified as a ClearBank Technology Partner for Live API. Depending on the connectivity method, security of the payment operations will be ensured by one or more of the following: API Keys, Certificates, Digital signature.
🇬🇧 HSBC names Jane Masen as Global Head of Custody. Holding over three decades of experience, Masen joins from J.P. Morgan, where she served as global head of network management. Continue reading
Want your message in front of 100.000+ Digital Banking fanatics, founders, investors, and operators?
Shoot me a message on LinkedIn or send me an e-mail.
