Zone Raises $8.5 Million for Blockchain Payment Network Expansion

African blockchain payment network, Zone, has secured a total of $8.5 million in a seed funding round that was oversubscribed. This funding round was led by venture capital firms Flourish Ventures and TLcom Capital.

Zone’s Unique Blockchain Solution

Zone operates a Layer-1 Blockchain network, which enables participating institutions to connect directly with each other. This sophisticated technology allows for payment transactions to be carried out without the need for an intermediary. Additionally, it automates processes such as settlement, reconciliation, and dispute management.

Redefining payment infrastructure in Africa, Zone is the continent’s first regulated blockchain network for payments. It has already onboarded over 15 of Africa’s largest banks and fintech companies, demonstrating its significant potential in the market.

Utilizing the New Funding

According to Zone’s CEO and co-founder, Obi Emetarom, the newly raised funds will be utilized to broaden the network’s coverage domestically. The aim is to connect more banks and financial services companies to the network.

In addition to domestic expansion, a substantial part of the funding will be allocated to perform a comprehensive pilot program. This is designed to test the company’s cross-border capabilities and is set to occur in 2025.

Investor Confidence Despite Funding Drought

Emetarom expressed his gratitude for the high-quality investors that participated in the funding round. He highlighted that the oversubscription of the round, despite an overall funding drought, reflects trust in the Zone brand. It also underlines investor excitement about the potential for redefining payment infrastructure in Africa.