HUB2, a French fintech company specializing in payment infrastructure and interoperability across Francophone Africa, has successfully raised €8 million in a Series A funding round. This significant investment is poised to accelerate HUB2’s mission to provide stable and high-performing payment solutions throughout the region.
Background on HUB2
Founded in 2018 by telecom engineer and former Orange Middle-East Africa executive Ashley Gaüzère, HUB2 has rapidly established itself as a pivotal player in the African fintech landscape. The company offers a comprehensive platform that enables both African and international fintech enterprises to access a variety of payment methods, including bank accounts and mobile money wallets, thereby facilitating seamless online transactions.
Operating across multiple countries in West and Central Africa, HUB2 has forged partnerships with major financial industry entities such as Orange, MTN, Moov, and Wave. These collaborations ensure interoperability and efficiency in payment processing, allowing HUB2 to process approximately €1 billion in annual transactions. The company’s clientele encompasses a diverse array of businesses, including neobanks, payment service providers, international remittance operators, and e-retailers.
Funding Details
In July 2024, HUB2 secured additional funding from Nairobi-based Enza Capital to accelerate its growth and innovation within the African payments sector. This investment follows a €1.25 million equity investment from ESSOR PME La Réunion in September 2023, which was instrumental in developing HUB2’s Application Programming Interface (API) for interoperability between mobile money wallets in Western Africa. Earlier, in 2021, HUB2 raised $1.8 million from investors including APICAP, COMPASS, and BPI Réunion, facilitating the development of products and services designed to streamline payment and distribution channels for insurance companies, brokers, retailers, and financial institutions within the CIMA zone.
Significance of the Investment
This latest funding is a pivotal milestone for HUB2, underscoring the company’s commitment to enhancing the payment ecosystem in Francophone Africa. By bolstering its technological infrastructure and expanding its services, HUB2 aims to address the region’s fragmented payment systems, high transaction costs, and limited financial inclusivity. The investment aligns with the broader trend of digital transformation in Africa, promoting financial inclusion and economic growth by providing accessible and efficient payment solutions.
HUB2’s Offerings and Market Impact
HUB2’s platform offers a comprehensive suite of services that enable businesses to receive and make payments through various channels, including mobile money, bank cards, and transfers. By providing an interoperability layer that connects all payment methods within a country, HUB2 addresses the significant demand for more interconnected mobile banking and financial systems in Africa. This approach facilitates seamless transactions for clients such as neobanks, payment service providers, international remittance operators, and e-retailers, thereby enhancing financial inclusion and supporting economic development across the region.
Regional Context
Francophone Africa has historically faced challenges in payment infrastructure, including fragmented systems, high transaction costs, and limited financial inclusivity. These issues have hindered economic growth and the adoption of digital financial services. HUB2’s initiatives are pivotal in addressing these challenges by providing interoperable payment solutions that connect various financial platforms, thereby fostering a more inclusive and efficient financial ecosystem. By enabling seamless transactions across different payment methods, HUB2 is contributing to the digital transformation and economic development of the region.
Future Plans
With the recent funding, HUB2 plans to accelerate its expansion in West and Central Africa, aiming to establish a presence in 15 countries by 2025. The company intends to enhance its technological infrastructure, develop new products, and form strategic partnerships to better serve its clients. HUB2 is also investing in research and development to innovate its payment solutions, ensuring they remain robust, secure, and adaptable to the evolving needs of the African market. By focusing on scalability and innovation, HUB2 aims to solidify its position as a leading payment orchestrator in the region.
Expert Opinions and Commentary
Ashley Gaüzère, CEO and Founder of HUB2, emphasizes the company’s commitment to financial inclusion and digital transformation in Africa. He notes that mobile money remains a primary driver of financial inclusion in Sub-Saharan Africa, with the market experiencing rapid growth in registered accounts and transaction values. Gaüzère highlights HUB2’s role in enabling interoperability between mobile money wallets, which is crucial for the continued growth and integration of digital financial services in the region.
Industry analysts recognize HUB2’s contributions to the African fintech landscape, particularly in facilitating digital payments and supporting the operations of insurance companies, banks, and other financial institutions. By providing a comprehensive payment platform, HUB2 is addressing critical gaps in the market, thereby promoting economic development and financial inclusion across Francophone Africa.
Conclusion
HUB2’s recent €8 million Series A funding marks a significant milestone in its mission to enhance payment infrastructure in Francophone Africa. Through innovative solutions and strategic expansion, the company is poised to play a pivotal role in the region’s digital transformation, fostering financial inclusion and economic growth. As HUB2 continues to develop and implement its payment platforms, it stands as a testament to the potential of fintech in addressing longstanding financial challenges and unlocking new opportunities in emerging markets.
