Canza Finance, a Web3 neobank enabling decentralized cross-border payments for Africans, today announced the close of a $2.3 million strategic round. The round was led by Polychain Capital, with participation from Protocol Labs, Avalanche’s Blizzard fund, 99 Capital, Stratified Capital, Hyperithm, and others. The funds will support the development of its decentralized financial technology, providing businesses with more cost-effective access to foreign exchange (FX) rates and facilitating increased intra-African trade.

Limited access to forex liquidity and currency swaps in Africa hinders the utilization of United States dollar-based services in the continent's import-dependent economies. To tackle this challenge, Canza is building a suite of products starting with Baki which aims to facilitate decentralized foreign exchange (FX) for African currencies. By enabling slippage-free swaps at central bank rates, Baki will empower businesses with more affordable access to FX, fostering increased intra-African trade. Baki is built on Avalanche. Avalanche’s minimal transaction fees and near-instant time-to-finality help Baki break new ground and become the first synthetic DeFi market for African stablecoins. This also aligns with Avalanche’s vision of on-chain finance in the institutional sphere and blockchain adoption in emerging markets.

“We aim to significantly boost infrastructure development, particularly in Africa. With over 50 countries on the continent, our focus is on expanding infrastructure and obtaining necessary licenses in suitable jurisdictions. Additionally, we will drive the growth of our DeFi infrastructure products,” Oyedeji Oluwoye, Co-founder and CTO of Canza Finance, said in a statement.

Prior to this funding round, the firm, in March 2022, raised a $3.27 million seed round led by Fenbushi Capital, with participation from Hashkey Capital, Emurgo Ventures, Boxing Ventures, Consensys, and Protocol Labs to expand its cross-border settlement service in major markets including Nigeria, South America and Asia.

Niraj Pant, General Partner at Polychain Capital, commented: “We're thrilled to be part of Canza Finance's recent funding round. Canza Finance's expert team, coupled with their advanced technical and operational capabilities, will play an important role in tackling big challenges in commerce for Africa's growing population,” said Baki Exchange, part of Canza Finance, has the potential to bring financial freedom to countless Africans and enable the growth and transfer of wealth throughout the continent. We are eager to partner with Canza as they revolutionize Africa's financial landscape.”

“Blizzard the Avalanche Fund is excited to support the Canza finance team, which is addressing challenges of inflation, financial instability, and barriers to accessing financial services in Africa,” said Lydia Chiu, VP of Business Development at Ava Labs and CIO at Blizzard. “Canza will offer solutions to both businesses and everyday people, facilitating better cryptocurrency onramps, cross-border settlements, DeFi opportunities, and much more. Additionally, Canza Finance gives Avalanche another foundational project in Africa, expanding the Avalanche community there.”