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Cleva: Nigerian Fintech Startup Raises $1.5 Million in Pre-Seed Round
Cleva: Nigerian Fintech Startup Raises $1.5 Million in Pre-Seed Round
Nigerian fintech startup Cleva has recently secured $1.5 million in a pre-seed round, marking a significant milestone in its mission to facilitate international payments for African individuals and businesses by enabling them to open USD accounts. This funding round, led by 1984 Ventures, an early-stage venture capital firm based in San Francisco, has drawn participation from prominent investors such as The Raba Partnership, Byld Ventures, FirstCheck Africa, and several angel investors. Notably, Cleva has also garnered support from Y Combinator as it embarks on its journey as part of the accelerator’s winter 2024 batch.
Cleva operates within a competitive market landscape, contending with players like GeePay and Payday. The Y Combinator-backed startup generates revenue through currency exchange transactions within its USD accounts, charging a modest 0.9% fee on deposits and capping fees at $20. This approach sets Cleva apart from its competitors, who commonly apply an uncapped 1% fee regardless of the transaction amount.
Investors have expressed confidence in Cleva’s potential to address the challenges posed by hyperinflation in Africa. Aaron Michael, a partner at 1984 Ventures, emphasized the founders’ qualifications and the unique value proposition of their product. Tolu Alabi, one of Cleva’s co-founders, underscored the global relevance of their solution, emphasizing that the need to receive international payments extends beyond Nigeria and Africa, presenting a substantial opportunity on a global scale.
The founders of Cleva, Tolu Alabi and Philip Abel, bring a wealth of experience to the table, with backgrounds in major tech companies such as Amazon, Stripe, AWS, and Twilio. Their deep understanding of the challenges faced by Africans in receiving international payments has been instrumental in shaping Cleva’s vision and product offerings. Leveraging their technical and product expertise, the founders are positioned to address a market estimated to be an $18 billion opportunity, catering to remote workers and freelancers in Africa.
Since its inception in 2023, Cleva has made significant strides, enabling thousands of Nigerians to open USD accounts and processing over $1 million in monthly payments. Fintech has demonstrated robust growth, achieving a remarkable month-on-month revenue increase of 100%.
Cleva’s commitment to addressing the global challenge of facilitating international payments is underpinned by its founders’ intimate understanding of the market and their vision to expand its impact beyond Nigeria. As fintech embarks on the next phase of its journey with the support of influential investors, it is poised to play a pivotal role in empowering individuals and businesses across Africa to navigate the complexities of international transactions amidst hyperinflation challenges.
The successful pre-seed funding round marks a significant milestone for Cleva, setting the stage for its expansion and continued innovation in the fintech space. With a compelling value proposition, a talented team, and strong investor backing, Cleva is well-positioned to make a lasting impact in the realm of international payments, both in Africa and on a global scale.
