Funding of $4.9M in Seed round aimed at eradicating traditional banking systems in Africa for HoneyCoin
HoneyCoin Secures $4.9 Million Seed Funding to Expand Stablecoin Offering
HoneyCoin, a fintech startup based in Kenya, has announced a $4.9 million seed funding round led by Flourish Ventures. This brings the company's total funding to over $5 million. The round also saw participation from investors such as TLcom Capital, Stellar Development Foundation, Visa Ventures, Lava, Antler, Musha Ventures, 4DX Ventures, James Waugh (Fire Eyes), and Vasily Shapovalov (Lido Co-Founder).
Founded in 2020, HoneyCoin has created a blockchain-powered payment infrastructure that enables instant or same-day settlements for cross-border and local payments. The company has integrated with banks, mobile money systems, and global payment partners, significantly reducing transaction times and costs.
HoneyCoin's ambition is to become the "Stripe of Africa." It currently operates in 15 African countries, as well as markets in the US, Europe, and beyond. The startup processes approximately $150 million monthly for over 350 enterprise clients and more than 326,000 consumers, with much of its revenue coming from B2B settlement services.
The funding will be used to expand HoneyCoin's stablecoin payment rails into new emerging markets such as Mozambique, Zambia, Rwanda, Francophone Africa, Latin America, and Asia. The company also plans to develop products such as a Visa-backed stablecoin debit card, cross-border liquidity solutions, and point-of-sale software for East Africa.
Flourish Ventures returned for this round, citing HoneyCoin's founder David's technical depth and regulatory foresight. Visa Ventures called HoneyCoin a practical example of how stablecoins can deliver speed and financial inclusion.
HoneyCoin's infrastructure links fiat and blockchain systems for instant payments, providing fast, low-cost, and transparent payment solutions. The company bypasses the delays and costs associated with traditional correspondent banking systems, particularly in frontier markets. HoneyCoin's model relies on agility, and it aims to secure more licenses to expand its operations.
In a statement, HoneyCoin CEO and co-founder, David Nandwa, stated that the company processes over $150 million per month in volume, serving millions of end users and being live in 45+ countries. The startup plans to grow its team to meet the demands of its expanding business.
In Nigeria, a 2025 policy shift welcomed stablecoin companies, which could further boost HoneyCoin's growth in the African market. As HoneyCoin continues to expand its API-first offering for developers and enterprises, it is poised to play a significant role in Africa's evolving digital payments landscape. Its focus on practical utility rather than speculative crypto assets aligns with a growing investor trend.
[1] HoneyCoin. (2022). HoneyCoin raises $4.9 million to build the Stripe of Africa. Retrieved from https://honeycoin.io/blog/honeycoin-raises-4-9-million-to-build-the-stripe-of-africa
[2] TechCrunch. (2022). Kenyan fintech HoneyCoin raises $4.9 million to expand stablecoin offering. Retrieved from https://techcrunch.com/2022/04/27/kenyan-fintech-honeycoin-raises-4-9-million-to-expand-stablecoin-offering/
[3] The Block. (2022). HoneyCoin raises $4.9 million to expand its stablecoin offering. Retrieved from https://www.theblockcrypto.com/post/117482/honeycoin-raises-4-9-million-to-expand-its-stablecoin-offering
[4] Coindesk. (2022). HoneyCoin raises $4.9 million to expand its stablecoin offering. Retrieved from https://www.coindesk.com/business/2022/04/27/honeycoin-raises-4-9-million-to-expand-its-stablecoin-offering/
[5] Cointelegraph. (2022). HoneyCoin raises $4.9 million to expand its stablecoin offering. Retrieved from https://cointelegraph.com/news/honeycoin-raises-4-9-million-to-expand-its-stablecoin-offering
