Yesterday, May 29, 2023, in the press release, Zofi cash announced that they successfully secured pre-seed funding of $1 million USD from Advancly, a
Yesterday, May 29, 2023, in the press release, Zofi cash announced that they successfully secured pre-seed funding of $1 million USD from Advancly, a well-known business-to-business financing company.
According to Zofi Cash, their mission: to revolutionize the way salaried individuals access their earnings and enables workers to meet their immediate financial needs without waiting until the end of the month through Zofi Cash’s innovative platform.
Zofi cash currently, partners with over 1,500 employers and serving more than 20,000 employees in Uganda alone. In my opinion, “they have clearly learnt that living in Uganda, relying on end-of-month salary payments does not give employees the opportunity to enjoy the comfort and fruits of their labor, with Zofi Cash, having to feel broke at midmonth, now a thing of the past.”
While we took a clear look; we felt that actually, you need hear it from the horse’s mouth; A one Susan Namaganda testifies the value obtained from Zofi Cash and she says; “Zofi Cash has always been there for us as a company, especially when our employees needed financial assistance. Very timely and dependable. These salary advances have been an invaluable asset to our company’s continued growth, as most of our employees are now more motivated and productive than before…”
Notably, over the last three years, we notice a trajectory growth of investment towards startups in Africa. From 2020, Partech reports shows that at least in the 10 African countries, we are making progressive strides and with a good deal count except that we may need to also increase the ticket sizes which is determined by quite a number of factors like Policy, markets, etc.
On the other hand, the Brighter Bridges report of 2021 states that out of the $4.8 billion worth of all disclosed deals in Africa, 75% of the deals are concentrated in Kenya, South Africa, Nigeria, and Egypt. While significant investments are being made in Nigeria, Ghana, Kenya, and Egypt, it is worth noting that Uganda is also experiencing a rise in investments. In the year 2023 alone, Ugandan startups such as Xente and Wazi Vision have made remarkable strides, closing undisclosed impact investment deals with Renew Capital and many others.
Zofi Cash’s entire $1 million funding round has come from Advancly, a business-to-business financing company that operates across six African countries. Their core objective aligns with Zofi Cash’s — to reimagine credit access for MSMEs in Africa and emerging markets, leveraging capital, data, and technology. Advancly has been an active investor in Africa, funding various startups such as Lipalater, a Buy Now Pay Later (BNPL) platform in Kenya, Market Force, an e-commerce platform, and Pezesha, an SME financing platform.
In this Press release sent to Kaapya’chi, we also noted that Lotanna Julian, Co-Founder & CEO of Advancly, emphasizes the importance of continuous innovation in the flow of money. He states, “People and businesses to experience progress, the flow of money needs to be innovated continually” which aligns with Zofi cash’s ultimate goal of building a robust financial ecosystem that brings prosperity to all. He also emphasizes the significance of cash flow management alongside earning income.
This substantial investment solidifies Zofi Cash’s dedication to ensuring that salaried workers have access to their wages when needed. The unwavering committment exhibited by the founders of Zofi Cash; CEO — Mr. Paul Kirungi and CTO — Mr. Gordon Turibamwe and Team indeed; no individual ever has to wait for payday again.
They expressed confidence in their ability to fulfill their mission while expanding their reach to help more people in need, with the support of their partners and investors. Zofi Cash marked Advancly’s first venture into the Ugandan market.
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