Led by Nigeria, Africa’s burgeoning payment industry is poised to birth more unicorns before the end of 2022, pushing the number above the current five. This is as a result of increasing investments in startups scattered across the continent.
Among the latest with the huge fund-raising news is Union54. The Zambian-based startup has raised $12 million in a seed extension round led by Tiger Global.
The round, which has existing investors such as Vibe VC as participants and new investors – Earl Grey Capital and Packy Mccormick’s Not Boring Capital, comes six months after Union54 announced a $3 million seed round also led by Tiger Global, according to TechCrunch.
Union54, whose API allows African software companies to issue and manage their debit cards without needing a bank or third-party processor, was launched last year in October. It went through the Y Combinator’s 2021 summer batch and has since witnessed significant growth.
The startup said it has issued over half a million virtual debits, processing volumes of transactions reaching double digits in millions of dollars.
In a chat with TechCrunch, CEO Perseus Mlambo disclosed how the company has beaten expectations since launch and how it plans to expand.
Mlambo said Union54’s revenue in its first month (October) was a little less than $3,000. In November, the company’s revenue increased by 600% and has subsequently grown 50% month-on-month.
“What this is telling us is that there’s very much real interest in the number of people who want to have debit cards and this is not going to stop anytime soon,” Mlambo said in an interview.