- Djamo, an Ivorian fintech startup that provides financial services for users in Francophone Africa, has raised $14 million to drive regional expansion.
- Enza Capital, Oikocredit, Partech Africa, Janngo Capital, Axian, Launch Africa, P1 Ventures, and Y Combinator invested in the two-year-old startup.
Djamo, an Ivorian fintech startup, has disclosed a $14 million round led by Enza Capital, Oikocredit and Partech Africa. Janngo Capital, Axian, Launch Africa, P1 Ventures, and Y Combinator also invested.
The startup, part of Y Combinator’s Winter 2021 batch, provides financial services for users in Francophone Africa. In Ivory Coast, where it was founded, only about 19% of citizens in the country own a bank account. On the other hand, mobile money services are prevalent – 83% of Ivorians use mobile money services. Djamo provides a platform for users to send money between mobile money wallets and banks.
That is not the only service the startup offers users. It also helps them receive salaries digitally and provides a Visa-powered debit card that users can use when paying for services online. Customers can create virtual accounts for peer-to-peer transactions or use the startup’s savings feature.
Speaking to TechCrunch, CEO Hassan Bourgi explained that the startup’s primary goal is ensuring customers can manage their money properly.
“Before Djamo, it was a real challenge for an average customer to receive salaries digitally because they weren’t integrated into the banking system. We found the right partner to launch that product, and any company can pay salaries to employees with a Djamo account. When you look at Djamo, alongside other products, we want customers to be able to better manage their money and help them plan for their future. We’re not necessarily trying to digitise cash like mobile wallets. We are here to work on the personal finance side.”
With over 500,000 users, the startup has processed more than $400 million while it has seen revenue grow 20% to 25% month-on-month. Its Chief Product Officer and Co-Founder, Régis Bamba, shared that the startup has primarily grown through word-of-mouth, adding that it wants to ensure users get the best value for their money.
“In our region, users pay amongst the highest fees in the world but do not always receive adequate service in return, and that can be extremely frustrating. The one thing that we want to achieve is to offer a product where customers get real value for their money. The app has been growing organically like crazy, and to get such numbers in a market like this within a short period, is proof that we’re nailing the overall user experience and building something very relevant for users.”