Nigerian-based cryptocurrency startup Yellow Card has successfully raised $1.5 million on its recently-concluded seed funding round. Polychain, Andreessen Horowitz, and Celo, through the Celo Ecosystem Fund, have invested in this business.
This money will help us bring Bitcoin to every part of Africa!
Thank you all for your support on our journey to make Bitcoin accessible to everyone!
— Yellow Card (@yellowcardio) August 28, 2020
As announced by its team, Yellow Card has been working hard in expanding to new territories, establishing itself as the top crypto exchange in Nigeria. The main purpose of the fundraising event is the launching of its services in Kenya and Cameroon starting tomorrow, September 1.
Its press statement highlighted:
After expanding to South Africa and Botswana and adding over 30,000 new vendors, Yellow Card has come out with a stunning announcement of fundraising from multiple eye-catching investors.
Earlier this year, a report from Arcane Research disclosed that Africa is one of the most promising regions for cryptocurrency adoption. Notably, Bitcoin and crypto ownership rate in South Africa (13%) stands relatively higher than the worldwide average of 7%.
With this in mind, Yellow Card, which started out as a crypto and gift card platform in 2016, plans to expand even further and become the dominant exchange across the continent. As it began its ascent, it has gained support from Binance as part of its Binance Labs’ Incubator Program (Season 2) in June 2019.
Supporting its lead in the African crypto renaissance is Andreessen Horowitz (a16z), one of the largest private American venture capital firms, that has prior investments on other blockchain-based projects like Ripple and CryptoKitties.
Yellow Card is one of the major drivers of blockchain and crypto innovation across the African market. Yet it is worthy to note that as stricter tax legislation regarding cryptocurrencies may be introduced to South Africa in the future, the company, as well as traders and investors, must prepare ahead of time for upcoming regulations.