Africa News Bulletin

Comoros: DafriBank reports double increase in activities and reveal seed round

Following the news of the Comoros International Banking Authority (CIBA) granting DafriBank a commercial Banking licence back in 2021, DafriGroup PLC led by entrepreneur Xolane Ndhlovu, has shown no sign of slowing down.

DafriBank aims to become the largest digital entrepreneurs focused bank in Africa with 50 000 active users since inception in August 2021, an increase of more than 500% in the last 6 months.

The bank offers a wide range of banking products and services covering the personal, corporate, lending, small and medium enterprises market segments. According to information on the company website, Dafri’s wide spectrum of financial solutions for business clients includes structured finance, merchant API, working capital finance, and tailor-made term financing options.

At a press briefing held virtually on 2 March, the company revealed its plan to raise seed capital. It is seeks to raise $80m for a 49% stake at a valuation of $1bn through a group of private investors with a minimum of $1m contributions.

“DafriBank is leveraging its impressive technology and logistics capabilities to rapidly formalise informal channels and provide an affordable, safe alternative to risky informal remittance channels,” said Xolane Ndhlovu, chairman, DafriGroup PLC.

“DafriBank’s strong and stabilising presence in the markets and regions in which we operate provide inflows vital to immigrants and central banks alike. We work closely with regulators and central banks in this highly regulated industry to lead in compliance and provide innovative products that are affordable and accessible to our customers,” he added.

The company, which recently added support of IBAN and USDT Digital currency to its network, shedded light on its Stablecoin ambition. DafriBank plans to utilise some of the funds its plans to raise for expansion towards the creation of DafriBank Stablecoin to compete with the likes of USDT and USDC. A plan many have applauded as a welcoming development in an industry that has been at the centre of scandals over lack of transparency. “A regulated bank issuing a stablecoin makes more sense; I would gladly support DafriBank issuing stablecoin”, argued one crypto proponent.

“⁠Stablecoins have to reflect and evolve to live up to their name. Stablecoins have the possibility to become a promising alternative system amid global inflation, but they must be auditable to remain stable. Said Phumzile Malinga, DafriBank Stablecoin Project Director.

Over the last six years, the fintech sector has been the most populated and most funded among tech startups in the continent, with players raising almost $900 million over this period, according to Disrupt Africa, a website that tracks African startups.

Early in August 2021, a Chinese-backed and Africa-focused fintech company OPay raised $400 million in new financing led by SoftBank Vision Fund 2, valuing the company at $2 billion. The round, which marked the fund’s first investment in an African startup, followed Flutterwave’s $220 million round and Interswitch’s $200 million backing from Visa as interest in Africa-focused FinTech startup buoyant.

No doubt that DafriBank is following the above trend as the next African Unicorn FinTech brand. Dafri leverages its global bank agent network to avail its services in 180+ countries. The approach enables users in the countries where DafriBank has no offices to utilise its local agents to send/receive money abroad in a record time.

Business Insider Africa

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