Raenest’s founders. Image Credits: Raenest
Lagos-based fintech startup, Raenest, has successfully closed a Series A funding round with $11 million in funding. Globally recognized fintech-focused venture capital firm, QED Investors led the round. It also saw participation from other investors like Norrsken22, Ventures Platform, P1 Ventures, and Seedstars. This latest round brings Raenest’s total funding to $14.3 million.
Raenest came into being in 2022 when Victor Alade, Sodruldeen Mustapha, and Richard Oyome launched the startup as an Employer of Record (EOR), helping foreign companies pay African employees in compliance with local regulations. This drew the attention of the trio to the challenges individuals face in receiving international payments. The team soon pooled their collective experiences in African fintech together to address this pain point.
Raenest hopes to ease cross-border payments for Africans, enabling them to easily receive and send international payments. The startup has already processed over $1 billion in payments since it was founded in 2022, serving over 700,000 individuals and 300 businesses.
In March 2023, Raenest expanded its offerings to include business banking through its Raenest for Business brand. This move was borne out of demand from African companies seeking efficient ways to handle international payments, raise capital, and conduct cross-border transactions. The startup’s boasts of a notable clientele of African startups such as Moniepoint, Helium Health, Fez Delivery, and Matta.
Raenest’s primary markets are in Africa, with a strong focus on Nigeria, where it currently operates under a money transfer license. The company plans to expand into Egypt, Ghana, Kenya, and the U.S., leveraging its banking partnerships in the U.S. and U.K. to facilitate cross-border transactions. Its flagship product, Geegpay, offers freelancers virtual accounts in USD, GBP, and EUR, enabling them to receive payments, manage multi-currency wallets, and convert currencies. The platform also provides virtual and physical debit cards that support multiple currencies.
The new injection of funds from this investment will be channeled into Raenest’s expansion across Africa and beyond. The funds will be used to deepen its footprints in Nigeria, secure operational licenses in key markets such as Egypt, Ghana, Kenya, and the U.S., and strengthen its banking partnerships in the U.S. and U.K. The company also plans to strengthen its retail product, Geegpay, and Raenest for Business, its business-focused offering.
One of the key reasons for this investment is Raenest’s successful dual pivoting between freelancers and businesses. This distinguishes it from competitors that only serve one segment, giving the company a competitive edge. It also falls in line with investors’ desire for a financial ecosystem that allows a diverse range of users who could either be businesses or individuals.
Additionally, investors see Raenest’s planned entry into Egypt, Ghana, Kenya, and the U.S. as a logical step toward cementing itself as a pan-African fintech powerhouse. With regulatory approvals and banking partnerships in key markets, the startup is positioned for further growth and regional dominance. Furthermore, with U.S based fintechs like Mercury restricting its services in certain African countries, investors believe Raenest will be able to fill this void and provide reliable international payment solutions.
Lead investor QED Investors has been steadily expanding its presence on the continent, having backed Moniepoint, Remedial Health, Precium, and Cedar Money before investing in Raenest. The firm’s Africa strategy focuses on high-growth fintech startups solving critical payment infrastructure challenges, making Raenest a natural fit for its portfolio.
