NIGERIA – Panache Ventures, a Canadian pre-seed venture fund, has formed a strategic partnership with Kora, the Africa-focused fintech firm, intending to help African tech founders secure venture capital funding.
The deal is intended to address the persistent challenges faced by African tech entrepreneurs in accessing adequate funding to scale their groundbreaking ventures.
Funding for African startups declined by 54 percent to US$2.5 billion between January and October 2023 when compared to the same period in 2022 as indicated by Briter Bridges.
Founded in 2017, Kora serves as a payment gateway for local and international merchants, easing payments across several African markets, such as Nigeria, Ghana, and Kenya.
The fintech platform supports multi-currency transactions, facilitating cross-border payments for business owners in these countries.
In addition to this, Kora caters to various sectors, including gaming and betting, hospitality, e-commerce, and travel. It even launched a feature enabling users to accept USD payments, called the USD card-acquiring feature, in March 2023.
Kora penetrated the UK market in 2022, opening an office in association with the West Midlands Growth Company, an entity of the Birmingham government. This partner organization aims to spur regional investment and boost economic growth for the West Midlands and the UK at large.
“Through forging partnerships, offering mentorship, and providing guidance concerning funding opportunities, we intend to cultivate groundbreaking startups that will reshape Africa’s technology scene,” Kora’s CEO, Dickson Nsofor, said.
The announcement about the investment was made during the Venture Capital 101 event in Lagos. As the event host, Kora aimed to demonstrate its position as one of the pan-African payment gateways, facilitating seamless transactions across the region.
With a commitment to supporting tech founders and startups, Kora said it has been instrumental in driving innovation and economic growth in Africa.
The General Partner at Panache Ventures, Prashant Matta said, “This gathering serves as a testament to the incredible potential and entrepreneurial spirit in Africa’s tech ecosystem. The collaborations and discussions from this event will shape the future of innovative startups across the region.”
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