Nigerian fintech startup Cleva has secured $1.5 million in pre-seed funding to revolutionise international payments.
Spearheaded by 1984 Ventures and Y Combinator, the funding propels Cleva into the forefront of African startups, marking its inclusion in Y Combinator’s prestigious 2024 winter batch directory.
Founded in 2023 by Tolu Alabi and Philip Abel, both alumni of tech giants Stripe and AWS, Cleva embarked on a mission to simplify international payments for Africans. Beyond being a mere fintech startup, it symbolizes a visionary leap towards reshaping financial landscapes, particularly for users seeking to navigate the complexities of hyperinflation.
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Global Problem, Global Solution
Tolu Alabi articulates Cleva’s vision, stating, “The problem that [Cleva is] trying to solve, which is enabling people to receive international payments, is not a Nigerian problem nor an African one. It’s a global problem; people in Latin America, Asia, and even Canada need to receive dollars for their work and service.” The startup strategically chose Nigeria as its initial launchpad, leveraging local market insights before expanding its transformative solution globally.
The pre-seed round, spearheaded by 1984 Ventures, showcases the confidence of industry leaders in Cleva’s potential. With active participation from The Raba Partnership, Byld Ventures, FirstCheck Africa, and angel investors, the funding round signifies not only financial backing but a collective belief in it’s capacity to redefine financial norms.
Distinctive Offerings and Competitive Edge
What sets Cleva apart in a competitive landscape? The answer lies in its commitment to user-friendly solutions. Opening a USD account with Cleva is not just a process; it’s a swift experience, marked by a team with over a decade of collective expertise within the US banking system. Affordability is another hallmark, with deposit charges capped at $20, a refreshing departure from uncapped fees charged by competitors.
Cleva’s emphasis on being customer-obsessed sets a new standard in the fintech space. Tolu Alabi shares, “We believe in going above and beyond for our customers to have a great experience. This is the feedback we’ve gotten from customers. They know that when they email us or reach out to our customer support, it won’t take one week or two weeks.”
While Cleva is set to compete with other African startups offering similar banking solutions, the founders are undeterred. The roadmap includes diversifying revenue streams with upcoming products like USD cards and savings in US assets. Challenges faced by fintechs, such as choosing the right banking partner and attracting top talent, are part of Cleva’s growth journey.
Cleva’s Success Trajectory
Cleva’s success metrics speak volumes. Processing over $1 million in monthly payments and achieving a remarkable 100% month-on-month revenue growth, the fintech’s trajectory is a testament to its ability to execute beyond Africa. Aaron Michael, a partner at 1984 Ventures, underscores this, stating, “The team is uniquely qualified to address this given their experience building banking products at Stripe and robust platforms at AWS. The impressive early growth is a testament to the team’s unique capacity to execute across Africa and the US.”
As Cleva envisions a future where users can create professional invoices and send USD globally, the startup’s impact extends far beyond its current offerings. The quest for financial inclusion, efficient international payments, and a seamless USD banking experience positions the company as a catalyst for change, not just in Nigeria but on a global scale.
The com journey from a Nigerian fintech startup to a globally recognized player exemplifies the transformative power of innovative solutions. With a customer-centric ethos, strategic partnerships, and a vision to address a universal problem, Cleva stands at the forefront of reshaping the international payments landscape—one USD transaction at a time.