Africa’s first cryptocurrency exchange Yellow Card has announced the completion of its $40 million Series B fundraising round headed by Polychain Capital.
Valar Ventures, Third Prime, Sozo Ventures, Castle Island Ventures, Fabric Ventures, DG Daiwa Ventures, The Raba Partnership, and others also participated in the round.TechCabal saw a statement that said the company would use the money to grow its business, expand across Africa, make new products, and strengthen strategic partnerships across the continent.
Since closing its $15 million Series A round in August 2021, the cryptocurrency exchange says it has reached a few milestones, such as expanding from 12 to 16 countries on the continent and giving stock options to every full-time employee.It introduced Yellow Pay, a blockchain-based method of transferring value internationally. By March 2022, the company had more than one million users.
The Chief Executive Officer and co-of Yellow Card, Chris Mauric, speaking on the series B funding, said, “For the past three years, our team has worked tirelessly to make this technology available to everyone and to develop a product of international standard.
In light of the present market conditions, our capital raise’s success not only exemplifies our team’s tenacity but also distinctly indicates the need for cryptocurrency in Africa and the importance of doing so.
Will Wolf, a partner at the lead investor Polychain Capital, said that the size of the round, especially in a funding downturn, shows how confident new and old investors are in the company.
Yellow Card is the most proficient team in terms of execution in the continent. We are blown away by their seamless adjustments and adaptations to the one-of-a-kind opportunities and demands of the numerous African marketplaces.
When it comes to crptocurrency in Africa, we have hardly scratched the surface of what is possible, and we’re enthusiastic for what’s to come,” he added.
Chainalysis, a blockchain analytics platform, estimates that the value of the African cryptocurrency market increased by more than 1,200% between 2020 and 2021, making it the third-fastest growing crypto market in the world.
There has been a continuing trend of substantial capital rounds being attracted to crypto startups throughout the continent.
According to the African Blockchain Report, startups in the industry raised $91 million in the first quarter of 2022, representing a 1,668% year-on-year growth from the first quarter of 2021.