The company founded by Tope Alabi and John Obirije in 2019 provides instant, zero-fee transfers to Africans at home and in the diaspora.
It allows users to deposit cash on the app, send money to a bank account or another user and withdraw money to a connected bank or debit card.
Like other crypto remittance platforms, Afriex has built its business on stablecoins — a cryptocurrency backed by the dollar. In essence, the company buys cryptocurrency in one country and sells it in another to offer better exchange rates.
This is in contrast to better-known platforms like Western Union and Wise which use traditional banking systems.
It allows users to deposit cash on the app, send money to a bank account or another user and withdraw money to a connected bank or debit card.
Sending money overseas is still slow and expensive. Afriex fixes this by buying cryptocurrency in one country and selling it in another to offer better exchange rates and faster transfers than banks or other transfer services.
Based in the United States and Nigeria, the platform is already processing millions of dollars in payments each month for thousands of Africans in the diaspora and on the continent and will grow shortly.
Afriex is also a blockchain-based fintech platform built on stablecoins. This means the funds deposited into Afriex are converted into stablecoins which are backed by the dollar. This makes transactions cheaper and faster.
Blockchain technology has opened up a world of inventions. With its decentralized system, access and control over tech are democratized.
What this means is that with tech creating ease and becoming the future, blockchain technology is making this same ease and access to the future possible for any and everyone.
Afriex is using blockchain technology’s decentralized system to democratize wealth creation and create access to resources for everyone equally.
Afriex is facilitating intra-diasporan African money transfers and aid as well as international transfers.
Diaspora remittances to low-income countries run in the billions making the countries dependent on these remittances.
A large percentage of foreign remittances coming into Africa goes to aid families.
Therefore, Afriex is making intercontinental money transfers easier and thereby making aid easier to render and improving the economy as a whole.
How it Works
Transactions
Afriex is a money transfer platform that allows you to make instant and affordable money transfers at home and abroad. With Afriex you can send money between the US, Nigeria, Ghana, Kenya, Uganda, the UK, and Canada.
Additionally, you can send from a debit card to a bank account or other Afriex users.
Security
Afriex is very secure since they take the security of your personal information seriously. They also encrypt all personal data, so your info is always safe and they are Payment Card Industry Data Security Standard (PCI DSS).
Therefore, Your information will never be compromised and they’ll never sell your data as well.
Charges & Rates
Afriex charges no fee saving you money each time you make a money transfer but they charge a little fee on withdrawals.
You can send a maximum of 3000 USD per day and users can deposit money into an account and transactions are completed in minutes either to a direct bank account or another Afriex account.
It offers rates 25% cheaper than Western Union or MoneyGram, and users also have the option of sending and receiving cryptocurrency.
While international transfer platforms are tethered to traditional banking systems which attract enormous third-party fees and delays, Afriex has built a cheaper system by arbitraging crypto rates.
It buys crypto in one country and sells it in another for a better exchange rate.
Founders
Tope Alabi
Tope Alabi is a Co-Founder at Afriex.
Obirije John
John Obirije is the Co-Founder & CTO at Afriex.
Investors & Funding Rounds
Launch Africa, Y Combinator, SoftBank Opportunity Fund, Future Africa, Brightstone Venture Capital, Processus Capital, Uncommon Ventures, A$AP Capital, Precursor Ventures, Ivernet Holdings, and angel investors.
Afriex is another YC-backed startup, which is raising a $1.2 million seed round.
It has been processing about $500,000 per month in transaction fees and is used in more than 30 countries.
However, having started operations in Ghana, Kenya, and Uganda, Afriex is now processing millions of dollars each month.
On its website, customers can only send money to and from Nigeria, Ghana, Kenya, Canada, and the U.S.
With the new investment, the Lagos and San Francisco-based startup is looking to scale up by growing the team and expanding to other markets.
Pan-African VC firm Launch Africa led the seed round. Other investors include Y Combinator, SoftBank Opportunity Fund, Future Africa, Brightstone VC, Processus Capital, Uncommon Ventures, A$AP Capital, Precursor Ventures, and Ivernet Holdings. Angel investors like Russell Smith, Mandela Schumacher-Hodge Dixon, Furqan Rydhan, and Andrea Vaccari also took part.
Additionally, Afriex received $10 million in funding led by Sequoia Capital China and Dragonfly Capital, and this funding adds to the $1.3 million bringing its total funding so far to $11.3 million.
They have grown their user base by 500% and now process more than $5 million in monthly transfers.
Afriex is expanding across Africa and the globe and making financial transactions more inclusive for Africans.
Main Competitors
LATOKEN: This is the leading platform for multi-asset tokenization and cryptocurrency exchange.
NEOKRED: It is an Infrastructure Neo Bank that is designed to redefine your banking experience and promote open banking.
ICRYPEX: This is a cryptocurrency exchange platform focusing on money and foreign exchange markets, fixed-income products, and digital currencies.
Related:
Kaoun: Story, Founders, Investors & Funding Rounds