The US$10 million round will bring Paga’s total funding to US$44 million and Global Innovation Partners will take a board seat. The series B2 had Goodwell, Adlevo Capital, Omidyar Network, and Unreasonable Capital as round participants.
The startup will use the new capital to expand its payment solutions to Ethiopia, Mexico, and the Philippines.
Founded 9 years ago by Tayo Oviosu and Jay Alabraba, Paga is planning to go head to head with regional and global payment players, such as PayPal, Alipay, and Kenya’s M-Pesa.
“We are not only in a position to compete with them, we’re going beyond them. Our goal is to build a global payment ecosystem across many emerging markets.” Paga CEO Tayo Oviosu told TechCrunch at Disrupt San Francisco.
Paga has built a digital payment ecosystem that enables people to digitally send and receive money, and creating simple financial access for everyone through their mobile phones on both Android, iOS and USSD. The company makes money on merchant payments, bank to bank transfers, and selling airtime and data.
It is the leading mobile payment company in Nigeria, Africa’s most populous nation and largest economy, with over 9 million customers and 17,000 agents.
According to Tayo Oviosu, the startup has processed more than 57 million transactions worth $3.6 billion. And just recently, they the released an app that allows easy money transfer from their mobile devices.
Paga is among other major Fintech companies that making it easier and inclusive for financial services to reach the unbanked in Africa. M-Pesa, a product of Safaricom, Kenya’s dominant telco provider, has dominated the mobile payment space with than 27 million active users and 136,000 agents generating more than US$500 million of the Safaricom’ s US$2 billion annual revenues with plans underway to be launched in Ethiopia.