Bitcoin companies continue to attract a lot of attention from investors these days. BitPesa, a company focusing on using Bitcoin payments to bolster remittance services in African countries, recently raised an additional US$2.5m. This money will be used to expand the company’s presence and attract even more customers. There is no word on expanding the service to additional countries anytime soon, though.
BitPesa Picks Up US$2.5m In Funding
It is always positive to see Bitcoin companies get the attention they deserve. BitPesa has been working hard to improve bitcoin’s reputation in African countries, by offering it as an alternative to traditional remittance solutions. Compared to companies such as Western Union, Bitcoin is a far more convenient and cheaper solution.
This new US$2.5m investment round was led by Draper VC and backed by various prominent bitcoin and blockchain investors. Digital Currency Group, Pantera Capital, BnkToTheFuture, and Blockchain Capital are just some of the investors who took part in this round of funding. Interestingly enough, most of the investors had previously committed funds to BitPesa already, with the exception of Greycroft.
The previous round of funding for BitPesa occurred roughly two years ago, when the company raised US$1.1m. So far, BitPesa has been spreading their bitcoin-based remittance services to Nigeria, Kenya, and Uganda. It would be great to see the company expand its presence even further, but it remains unclear if that will be the case. For now, the company remains tight-lipped regarding any expansion plans.
The primary focus for BitPesa will be to maintain their customer growth in the three countries where the service is active right now. Additionally, BitPesa stated how they want to pay special attention to Nigeria throughout 2017, as that country is their largest market to date. Considering how the financial situation in Nigeria is deteriorating, Bitcoin could make a rather big impact in the country.
BitPesa is in a strong position to improve their market visibility over the coming years. The company invested in local teams, infrastructure, and compliance requirements to ensure they operate legally in those three African countries. Setting up a presence in other countries will require a lot of time and effort, that much is certain. For now, things are looking very positive for BitPesa, and it will be interesting to see what the company will do with this new round of funding.