Conduit, a cross-border payments platform, has secured US$ 6.5 million from Helios Digital Ventures to expand across Africa and grow its B2B money transfer system.
- Founded in 2021 by Kirill Gertman and Michael Gregson, Conduit initially linked cryptocurrencies and neobanks, but after the 2022 slump in some cryptos, Conduit remodeled its operations in August 2023 to tap into the B2B sector.
- The firm has hired Eric Wainaina*, a well known fintech executive, to lead their Africa unit, charged with overseeing business expansion.
- The firm is prominent Latin American region; dominating markets such as Brazil, Mexico, Colombia, and Argentina.
Businesses using the platform can pay US dollars directly to bank accounts via ACH or SWIFT, even without a U.S. entity, thus simplifying and reducing the costs of transactions.
“We see even greater potential in Africa, with impressive early growth and volumes we think might surpass Latin America by early next year,” said the CEO, who owes Conduit’s numbers to the vast market opportunity across both markets,” Kirill Gertman, CEO and co-founder of Conduit told TechCrunch.
Conduit is used by over 50 direct clients including import and export businesses, payroll services, and other cross-border platforms. The fintech says that its annual transaction value rose to over US$5 billion, with 20% emanating from businesses located in Nigeria and Kenya.
“We identified this as a much more pressing and tangible pain point than the bubble of decentralized finance. These are real-world issues faced by traditional businesses that need a better, faster, and more transparent way to transact with their suppliers and partners across borders,” Gertman added.
In 2022, Conduit raised US$ 17 million in seed funding in a round led by Portage Ventures. It recorded a 25% month-on-month revenue growth since December last year when it resorted to focus on expansion efforts.
According to Airwallex forecasts, the value of cross-border payments will stand at US$ 250 Trillion by 2027 – representing a 60% growth. B2B transactions are slated to retain dominance in these transactions, accounting for 97% of that figure.
*Eric Wainaina, is an angel investor in & former director of The Kenyan Wall Street.
