Nigeria-based fintech platform, Sudo Africa, has raised $3.7 million in pre-seed funding. The startup provides a card-issuing API for developers and businesses in Nigeria.
Leading in this round of funding is San Francisco-based VC firm, Global Founders Capital (GFC) while participating VCs include Picus Capital, LoftyInc Capital, Rallycap Ventures, Kepple Africa, Berrywood Capital, ZedCrest and Suya Ventures.
Other founders and Angel Investors that also participated in this round include Olugbenga ‘GB’ Agboola, Ham Serunjogi and Odun Eweniyi.
Card-issuing API fintechs are gradually gaining attention in the venture capital market with investors who believe that it is the next big thing in the fintech sector which is constantly attracting heavy funding in Africa.
Sudo was founded by Aminu Bakori and Kabir Shittu, with the aim of solving the issue of card issuing which was a problem they experienced firsthand in their previous startup – a mobile wallet system that allowed users to aggregate existing financial institutions into a single platform and perform transactions.
Speaking about the solution Sudo is offering, Bakori disclosed: “This is beyond just creating a prepaid card, funding that card and then allowing the customer to spend where he wants to. So all of these controls that we’ve set up on the card, like the spending controls where you can set how much can be expended, where it can be expended, and when, put the company in the front line and say, ‘hey, these are all the transaction details and spending controls, but still, do you want to go ahead and approve this transaction?’ This opens up a flow of opportunities for the fintechs and companies that use our platform.”
Technology has found its way into many processes and in Africa, infusing technology into a number of sectors has aided in creating better lives for people and has positioned the continent for many opportunities globally. While technology has been added to a number of sectors like health, real estate, education, e.t.c, the financial space seems to attract a number of investors to Africa.
These fintech platforms provide opportunities for financial inclusion and also provide a number of opportunities for several communities. For example, it is a hassle to make international purchases with a mobile wallet or local card in Nigeria but with the introduction of virtual dollar cards – an API of which startups like Sudo specialises – in a few digital banks and fintech platforms, this becomes less of an issue for many users and shoppers in this instance.
