Global early-stage investor that supports Fintech and Crypto founders on their journeys to build the next generation of financial services, Luno Expeditions has revealed its plan to invest in Africa’s fintech and Crypto startups.
Founded in 2021 by Jocelyn Cheng, Luno Expeditions which is the investment arm of Luno, a cryptocurrency exchange platform, seeks to fund between 200-300 startups each year and diversify beyond crypto into the broader fintech space.
The firm primarily invests in fintech and crypto startups across the pre-seed and seed stages, although its parent company has traditionally focused on cryptocurrency.
It has so far invested in some startups such as Stitch, Traction Apps, Busha, Cauri Money, Knabu, etc. It was also part of the investors that invested in Nigerian fintech startup Anchor when the startup announced its close of a $1 million pre-seed round.
Luno Expeditions has disclosed that it has its interest fixated on Africa’s startup ecosystem as the firm is betting on crypto and fintech companies in Africa, which is part of its strategy to tap into the growing adoption of cryptocurrency and fintechs in the region.
Having worked with startups in Africa and startups in more developed markets like the United States and Europe, Luno Expeditions founder Cheng disclosed that startups in Africa tend to have more traction than their European or American counterparts at the earlier stages and have more reasonable valuations which have tickled the interest of the company to invest in the African region.
There is no disputing the fact that the Crypto and Fintech ecosystem in Africa is growing at an exponential rate. Cryptocurrencies are gaining ground across Africa and have become popular in the region which has seen it gain widespread adoption.
Small retail payments in Sub-Saharan Africa are powering exceptional crypto adoption and usage, with the region conducting the world’s highest proportion (80%) of crypto retail payments of less than $1,000.
Also, African Fintechs on the other hand is emerging as a hotbed for investment, with an average deal size growing and the proportion of fintech funding in Africa increasing over the previous years, which has continued to bring jobs and growth to African economies.
