Klasha, a San Francisco based cross-border technology company, today announced that it has raised $2.4 million in seed funding to build technology infrastructure for cross-border commerce in Africa.
The investment round was led by Greycroft with participation from Seedcamp, Berrywood Capital, AVG Basecamp Fund, Practical VC, Plug and Play, First Fund, Expert Dojo, 2.12 Angels, MiLA Capital and angels, including Joe Cross, Ex-Marketing Head at Wise (formerly TransferWise), Santosh Ankola, Ex-Head of Product at TechCrunch and Michael Pennington, Co-founder of Gumtree.
The funding will help Klasha expand its technology to help multinational B2B and B2C companies such as Amazon, Zoom, ASOS and Zara. These companies will receive payments seamlessly online in African currencies from their African clients.
Klasha’s core technology will enable African consumers to use their local currencies to pay international online and offline retailers. The retailers will also receive the payouts in dominant currencies like USD, GBP, EUR.
Klasha is currently available in Nigeria, Ghana and Kenya and will invest in driving more revenue, growing its current 10,000 customer base, and expanding into new markets with three more African countries set to go mainstream by Q4 this year.
In the past few months, Klasha has progressively driven international businesses with the tools they need to grow and expand into Africa. Within five short months of launching, Klasha has processed more than 20,000 transactions across Africa with an average 366% MoM growth rate.
Klasha has built plugin integrations for companies such as WooCommerce, OpenCart and BigCommerce. Its integration library is rapidly growing to accommodate even more platforms, including Wix, Ecwid, Magneto and Commerce Cloud.
The company has an official partnership with BigCommerce under the umbrella of the Klasha Checkout. This initiative will reach thousands of e-commerce stores globally, enabling them to receive payments online from Africa.
Africa presents vast opportunities for scaling quickly in commerce. There are more than 400 million internet users in Africa, and the total value of e-commerce is expected to reach $29 billion by 2022. Still, the ability to pay online with African money methods including cards, M-Pesa, bank transfer and mobile money is challenging for consumers on the ground. Klasha believes that consumers in Africa should have built technology to facilitate the same frictionless access to the goods they want regardless of their geographic location.
- Klasha Checkout: A technology solution that allows international merchants to collect payments from Africa in local currencies. The checkout can be integrated into any e-commerce platform, website or app. Through this checkout, customers in Africa can make payments online using their preferred African payment method (card, bank account, USSD, M-Pesa, Mobile Money) in their local African currency, and the merchant receives the equivalent in their chosen currency. Customers can also enjoy cheap and fast delivery of their goods.
- Klasha Payment Links: A no-code option to accept payments for B2B and B2C merchants or independent sellers that do not have an e-commerce storefront. The Klasha Payment Link provides a flexible and easy way for international businesses to collect payments from customers in Africa without needing a website, app, or any coding skills. With just a few clicks, businesses can create a simple custom checkout page directly from their KlashaDash dashboard and share with their customers via email, WhatsApp or other social media platforms to receive payments.
- Klasha mobile app: A secure app that allows you to make local and international payments online in your local African currencies without any restrictions. With the Klasha mobile app, you can send and receive money from family and friends in Nigeria, Ghana or Kenya who use the app. Currently, there’s no monthly charges. You can also create a virtual card, fund it with NGN, KES or GHC, see all your transactions, including the amount paid, merchant details, card information and much more.
- KlashaWire - A fast and easy way for businesses to pay their suppliers overseas in their preferred African currency, whether Naira, Cedis or other currencies. The suppliers, on the other end, receive the money in the dominant currency of their choice. With this feature, small business owners can make large payments to suppliers overseas with ease while lowering the cost of the transaction directly on the Klasha dashboard. When payments are made, the supplier generally receives it in their dominant currency in two business days.
29-year-old Jess Anuna, Founder and CEO of Klasha, ex-Amazon, Net-a-Porter and Shopify, said: "By 2025, half of the world's population will live in Africa. At Klasha, we're building the technology to facilitate frictionless cross-border payments and allow international businesses to scale seamlessly into Africa through our API. Equally, we’re giving consumers in Africa the same access to the global e-commerce economy experienced on other continents. It is imperative that African consumers are able to remain globally competitive, which includes having access to the goods they want without payment or delivery restrictions.”
Alison Lange Engel, Partner at Greycroft, said: ''Klasha’s technology allows for seamless cross-border transactions at a time when Africa is rapidly growing and needs both payment and logistics solutions for online commerce. We're excited to support Klasha and their mission in simplifying borderless payments for commerce in Africa.''
Oloyede Oladimeji, CTO of Klasha, said: “We have built a secure and reliable commerce solution from scratch using modern technologies. As a business, it is important that we not only build but move fast. Every day, we are scaling our solution to solving a unique problem, connecting Africa to global merchants. Africa is a growing economy with huge potential but low card payment penetration, and we are enabling consumers in Africa to access products irrespective of their payment methods. Our multi-currency technology saves merchants the stress of dealing with all the different currencies available in Africa, allowing them to receive payouts in their dominant currency. What is amazing is not what we have built already but what we are going to build.”
Reshma Sohoni, Founding Partner at Seedcamp, said: ‘’As Africa continues to undergo digitisation, there's an increasing opportunity for online businesses in Europe and US to garner market share quickly by accepting payments online in African currencies due to the nascent stage of commerce on the continent. Klasha is our first investment in Africa which will allow frictionless scalability for merchants into the continent through their cross-border payment technology, enabling billions of underserved consumers to access their services.’’
Klasha remains committed to simplifying cross-border payments for commerce in Africa and empowering businesses with the tools they need to grow and expand into a market full of energized consumers.
Founded in Lagos, Nigeria in 2021 by a team of ex-Amazon, Shopify, Net-a-Porter and ASOS employees. Klasha is committed to making consumer goods online more accessible to customers across Africa. Also, their tools are poised to give Africans access to the global e-commerce economy. Their products help international retailers and online providers to sell seamlessly into the African continent. Their B2C also enables clients to generate virtual foreign currency cards so that they can shop online from their favourite retailers or pay for bills like international school fees or subscriptions.