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As the technological ecosystem of Africa extends, more people in the region are landing remote jobs with large technology companies and new global companies. But receiving the payment is still a challenge for many of these independent workers and remote workers: they have difficulty opening accounts that accept US dollars, face slow billing and payment processes, and does not help when their foreign employers use incompatible payment platforms.
Lagos -headed Stronger It is one of the many African Fintechs that have intervened to address this problem. Through your retail product, Geegpay, Raenest offers virtual accounts of USD, GBP and EUR of freelancers to receive payments, administer multipurpose wallets and convert coins. It also provides virtual and physical debit cards that accept multiple coins as US dollars.
Last March, the company expanded its platform to serve companies to rationalize international remittances with a new brand, Raenest for Business. Now, the startup has raised $ 11 million in Funds of Serie A, led by Qed Investors, to expand its scope in Africa.
Growth beyond independent workers
Interestingly, Raenest did not start with independent workers in mind. Victor Aladealong with co -founders Sodruldeen Mustapha and Richard OyomeHe launched the company in 2022 as a registration employer (EOR), helping foreign companies to pay African employees in accordance with local standards.
But a couple of months later, the founders realized that the real problem did not lie with the companies that sent payments, it was with people struggling to receive them.
“An American company may not matter if a payment is delay Jumia and Andela software told Techcrunch.
Based on their remote work experience, Alade and its co -founders, who also contribute experience working with African Fintechs such as Lemfi and Fairmoney, pivoted to address this pain point.
Geegpay quickly won traction with independent workers, but commercial records also began to increase. The team realized that African companies also needed foreign accounts to rationalize cross -border transactions. “Companies began to ask if they could obtain fixed bank accounts to simplify payments. That was when we started thinking: how big is this opportunity? Who else is building for Africa? Alade said.
The incorporation of Raenest of commercial banking could not have arrived at a better time. Around this time, Fintech Mercury, based in the United States, began to restrict the commercial accounts of several countries, including parts of Africa. Meanwhile, the competition in the Eor space was heating, with the main players as well as beginning to consider serving the continent more closely.
These events stimulated Raenest to rely on what he saw as a better opportunity: to offer African companies a way of receiving and sending international payments.
A viable gambit
The bet seems to be paying off. Since its launch in 2022, Raenest has prosecuted more than $ 1 billion in payments, an increase of 160% in the last two years, for freelancers and companies throughout the continent. Today, more than 700,000 people use the platform to receive payments from global platforms such as Upwork, Fiver and Taste. They also use it for online purchases and subscriptions.
On the company’s side, more than 300 companies trust Raenst to raise payments from international clients, raise investor capital and make cross -border payments. Its customer list includes new companies such as Moniepoint, Helium Health, Fez Delivery and Matta.
Raenst competes with several new Fintech companies that offer multiple accounts to customers in Africa, including Afriex, Cleva, Fincra, Gray, Varto and Leatherback. Alade argues that Raenst has an advantage because he addresses individuals and companies, unlike most players who serve exclusively to one of those customers people.
The company’s ambitions extend beyond cross -border payments. “We want to create a safe financial ecosystem and without problems for Africans, helping them win, invest and grow their wealth, regardless of where they are in the world,” said Alade, hinting at the next product releases.
Expansion plans
Currently, Raenest operates in Nigeria under a money transfer license. As part of its growth plans, the company will seek to deepen its presence in Nigeria and ensure licenses in Egypt, Ghana, Kenya and the United States.
The company has banking associations in the United States and the United Kingdom, and is also working to ensure more in these regions as the scale. Along the way, the company aims to attract talent to support its expansion, since it brings Geegpay and Raenest for business under a single brand, Raenest.
The Ronda de la Serie A carries the total financing of Raenst at $ 14.3 million.
The main investor QED, one of the main firms of Fintech VC in the world, has constantly increased its footprint in Africa since 2022. It has supported five new Fintech companies on the continent: Moniepoint, Remedial Health, Precium, Cedar Money and now, now, Raenest
“We firmly believe that when closing the gap between local and global markets, Raenest will unlock new opportunities for African entrepreneurs, independent workers and companies, which finally promote greater economic empowerment throughout the continent,” said Gbenga Ajayi, partner and chief of Africa and the East Medium in the investors Qed.
Other investors in the Round included signatures of VC Pana-Africano Norrsken22, Ventures Platform, P1 Ventures and Seedstars.
