Nigerian FinTech Cleva Secures USD 1.5M in Pre-Seed Funding to Revolutionize Banking across Africa
Looking ahead, the company’s long-term strategy involves transitioning from being solely a product-oriented service to evolving into a platform that issues APIs.
Tolu Alabi, Co-founder & CEO of Cleva, Posing for a Photograph at an Event. (Photo Credit: Cleva)
Nigerian FinTech firm Cleva has recently raised USD 1.5 million in pre-seed funding, with 1984 Ventures taking the lead in the investment round. Alongside 1984 Ventures, an early-stage venture capital firm based in the U.S., the funding included contributions from The Raba Partnership, Byld Ventures, FirstCheck Africa, and several angel investors.
Cleva's main objective is to build a banking platform for individuals and businesses in Africa, facilitating the reception of international payments through the establishment of USD accounts.
Representatives from 1984 Ventures have expressed their support for Cleva, emphasizing that the company's product addresses hyperinflation challenges in Africa, presenting a significant opportunity. Y Combinator, in addition to the previously mentioned investors, also participated in the pre-seed round, supporting Cleva during its involvement in the accelerator's winter 2024 batch. Y Combinator has previously supported African startups in facilitating the opening of US bank accounts for freelancers and remote workers, aiding with payments, savings, and currency exchange.
In an interview with TechCrunch, officials from Cleva highlighted the persistent difficulties Africans face in receiving international payments for their skills and products. The market for supporting payments for remote workers and freelancers in the region is estimated to reach USD 18 billion. Looking ahead, Cleva aims to expand its services beyond Nigeria, allowing individuals in various regions, including Latin America, Asia, and Canada, to receive international payments.
Initially introduced in Nigeria, Cleva's solutions enable users to open USD accounts, with the onboarding process requiring a Bank Verification Number (BVN) and government-issued ID. The company prioritizes an enhanced customer experience, remaining responsive to user inquiries through email or customer support.
Looking ahead, Cleva's long-term strategy involves transitioning from being solely a product-oriented service to evolving into a platform that issues APIs. This transformation will facilitate the distribution of services not only across various African countries but also globally.
