The African tech ecosystem is experiencing a significant transformation, driven by innovative fintech solutions. Among the key players in this revolution is Raenest, a Nigerian startup that has garnered attention for its groundbreaking approach to international payments for freelancers and businesses across Africa. With $11 million in Series A funding led by QED Investors, Raenest is poised to address the critical challenges faced by African freelancers in receiving payments from international clients. As Africa’s tech-driven economy surges, remote job opportunities with international tech firms have increased, but many African freelancers still face substantial hurdles in receiving payments from global clients. These challenges include difficulty in opening accounts that accept U.S. dollars, slow invoicing and payment processes, and incompatibility with foreign employers’ payment platforms.
Addressing Payment Challenges for African Freelancers
To solve these issues, Raenest launched its innovative product Geegpay in 2022. Geegpay offers virtual USD, GBP, and EUR accounts, multi-currency wallets, and virtual and physical debit cards that accept multiple currencies like U.S. dollars. This solution enables freelancers to receive payments efficiently and manage currency conversions seamlessly. By providing these essential financial tools, Raenest is empowering African freelancers to overcome the barriers that have long hindered their ability to participate in the global economy. The introduction of Geegpay has been nothing short of revolutionary for freelancers who previously had to navigate a complex web of financial intermediaries and currency conversion issues just to get paid.
This game-changing service has quickly gained traction among freelancers, who rely on platforms like Upwork, Fiverr, and Gusto for their income. Freelancers can now receive payments promptly, avoiding the often lengthy delays associated with traditional banking systems. This efficiency is particularly significant for individuals in Africa, where timely payments can have a profound impact on their livelihoods. With Geegpay, freelancers also enjoy the added benefit of seamlessly converting currencies, making international transactions hassle-free and boosting their financial independence.
Pivoting to Meet Individual Needs
Initially, Raenest focused on being an Employer of Record (EOR) to help foreign companies pay African employees while complying with local regulations. However, the company quickly pivoted to address the more critical problem faced by individuals struggling to receive payments. Co-founder Victor Alade noted that delays in payments can be significantly more impactful for individuals in Africa than for international companies, especially when compounded by the hurdles of currency conversion. Drawing from personal experience in remote work, Alade and his co-founders identified and addressed this critical pain point.
Geegpay rapidly gained popularity among freelancers, but it also attracted interest from businesses. Many African companies required foreign accounts to streamline cross-border transactions, prompting Raenest to expand its offerings to include business banking. Recognizing the demand for foreign accounts among African businesses, Raenest’s strategic pivot to meet individual needs has contributed significantly to its rapid growth. This move provided companies with fixed bank accounts to simplify payments, addressing a significant need in the market.
Expanding Services to Businesses
The expansion coincided with U.S.-based fintech Mercury restricting business accounts in parts of Africa and major players like Deel contemplating closer service to the continent, underscoring the pressing need for Raenest’s services. Since its inception, Raenest has processed over $1 billion in payments, a 160% increase over the past two years, serving more than 700,000 individuals and 300 companies. Businesses rely on Raenest to collect payments from international customers, capitalize on investments, and facilitate cross-border payments. Notable clients include Moniepoint, Helium Health, Fez Delivery, and Matta.
Freelancers use the platform to receive payments from their clients and also for online shopping and subscriptions. By addressing both individual and business needs, Raenest has positioned itself as a comprehensive financial solution in Africa’s burgeoning fintech landscape. The platform’s reliability has built trust among its users, fostering a network of satisfied clients who benefit from its seamless payment system. This dual focus not only sets Raenest apart from competitors but reinforces its commitment to bolstering Africa’s integration into the global economy.
Competitive Landscape and Strategic Vision
The fintech landscape in Africa features several competitors offering multi-currency accounts, such as Afriex, Cleva, Fincra, Grey, Verto, and Leatherback. However, Raenest’s dual focus on individuals and businesses gives it a distinct advantage over competitors that typically cater exclusively to one of these groups. Raenest’s vision extends beyond cross-border payments; the company aims to create a comprehensive financial ecosystem enabling Africans to earn, invest, and grow their wealth regardless of their global location. This broader strategic vision demonstrates Raenest’s understanding of the dynamic financial needs of its user base and its dedication to providing holistic solutions.
Raenest operates in Nigeria under a money transfer license and plans to deepen its presence there while also securing licenses in Egypt, Ghana, Kenya, and the U.S. The company maintains banking partnerships in the U.S. and U.K. and is working to solidify more relationships in these regions as it scales. As part of its expansion strategy, Raenest plans to integrate Geegpay and Raenest for Business under a single brand, which should streamline its services and enhance brand recognition. This unified brand approach is anticipated to further solidify Raenest’s market position and foster greater user loyalty.
Financial Backing and Future Prospects
Initially, Raenest aimed to be an Employer of Record (EOR) to assist foreign companies in paying African employees while adhering to local regulations. However, the company soon shifted focus to a more pressing issue: individuals experiencing difficulty in receiving payments. Co-founder Victor Alade pointed out that payment delays can be particularly detrimental for individuals in Africa compared to international companies, especially when coupled with the challenges of currency conversion. Using their personal experiences with remote work, Alade and his co-founders zeroed in on this significant problem.
Geegpay quickly became popular among freelancers and garnered interest from businesses. Numerous African companies needed foreign accounts to facilitate cross-border transactions, leading Raenest to broaden its services to include business banking. Acknowledging the need for foreign accounts among African businesses, Raenest’s strategic pivot to address individual necessities has greatly fueled its rapid growth. This initiative provided fixed bank accounts, simplifying payments and meeting a crucial market demand.
