Zone, a Nigerian blockchain payment startup that helps banks and fintechs process payments, has raised $8.5 million in seed funding. The new funding, led by venture capital firms Flourish Ventures and TLcom Capital, will help the firm develop a payment infrastructure for financial services providers across Africa and beyond.

Flourish Ventures and TLcom Capital are joined by well-known international blockchain-focused VC firms, such as Digital Currency Group (DCG), VKAV (Verod-Kepple Africa Ventures), and Alter Global, in this funding round.

Zone's blockchain network aims to provide seamless and reliable payment experiences for financial service providers and their customers on a large scale. According to Zone, over 15 of Africa’s largest banks and fintech companies use its network to process payments.

Zone intends to use the fresh funding to expand the reach of its network domestically and forge connections with more banks and financial services institutions. Zone revealed that a significant portion of the funds will be allocated towards conducting an extensive pilot program in 2025 to test the company's cross-border capabilities, reinforcing Zone's commitment to preparing for its expansion across Africa and supporting both intra-African and international payments.

Zone’s fresh funding comes in a difficult fundraising market. African startups raised $3.2 billion in 2023—the lowest figure in three years, according to the Big Deal.

“The participation of high-quality investors despite the funding drought and the fact that we had more interested investors than we needed, is a sign of trust in the Zone brand and investor excitement about the opportunity to redefine payment infrastructure in Africa,” Obi Emetarom, CEO and co-founder of Zone, said in a statement seen by NODO. “As we step into this new phase at Zone, we are re-energized and our commitment to transforming Africa’s payment infrastructure is renewed.”

Flourish Ventures, a global fintech venture firm with a specific focus on early-stage investments, will offer Zone invaluable global insights, access to influential industry networks, and expertise in the African fintech landscape, facilitating the company's entry into new markets. Meanwhile, UK-based TLcom Capital will provide essential local credibility and a deep understanding of the African tech ecosystem, leveraging its existing relationships in Nigeria to establish a solid foundation for Zone in its home market.

“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,” Ido Sum, Partner at TLcom Capital said.

Image Source: Zone