Get to know Raenest, a Nigerian startup that recently secured $11 million in Series A funding led by QED Investors, a prominent U.S.−based fintech venture capital firm.
The funding round, which also saw participation from Norrsken22, Ventures Platform, P1Ventures, and Seedstars, brings Raenest’s total funding to $14.3 million. The funding will be used to expand the company’s operations across Africa and beyond, with a focus on simplifying cross-border payments for freelancers, remote workers, and businesses, according to Tech Crunch.
Raenest was founded in 2022 by Victor Alade, Sodruldeen Mustapha, and Richard Oyome to tackle the persistent challenges faced by African remote workers and freelancers in receiving international payments. Many of these workers struggle with slow invoicing processes, incompatible payment platforms, and difficulties in opening U.S. dollar-denominated accounts. These hurdles are particularly acute in countries like Nigeria and Kenya, where delays in payment conversions can significantly impact livelihoods.
Initially launched as an Employer of Record (EOR) service to help foreign companies pay African employees in compliance with local norms, Raenest quickly pivoted to address the more pressing issue of individuals struggling to receive payments.
This shift led to the creation of Geegpay, a consumer-focused product that offers virtual USD, GBP, and EUR accounts, multi-currency wallets, and virtual and physical debit cards. Geegpay has become a lifeline for freelancers and remote workers, enabling them to receive payments from global platforms like Upwork, Fiverr, and Gusto.
While Geegpay initially gained traction among freelancers, Raenest soon recognized the growing demand from African businesses for streamlined cross-border payment solutions. In March 2024, the company launched Raenest for Business, a platform designed to help enterprises manage international remittances, raise capital, and conduct cross-border transactions. This expansion came at a critical time when U.S.-based fintech Mercury began restricting business accounts in several African countries, creating a gap that Raenest was well-positioned to fill.
Today, Raenest serves over 700,000 individual customers and more than 300 businesses, including notable startups like Moniepoint, Helium Health, Fez Delivery, and Matta. The platform has processed over $1 billion in payments, marking a 160% increase in transaction volume over the past two years.
With the new funding, Raenest plans to deepen its presence in Nigeria and Kenya while expanding into the U.S. and Egypt. The company also aims to secure additional licenses in other countries like Ghana, and strengthen its banking partnerships in the U.S. and U.K. These efforts will enhance Raenest’s ability to offer fast, transparent, and affordable financial tools to its users.
Gbenga Ajayi, Partner and Head of Africa and the Middle East at QED Investors, highlighted Raenest’s potential to bridge the gap between local and global markets. “We firmly believe that by bridging the gap between local and global markets, Raenest will unlock new opportunities for African entrepreneurs, freelancers, and businesses, ultimately driving greater economic empowerment across the continent,” he said.
Raenest’s mission extends beyond payments. The company envisions creating a seamless financial ecosystem that enables Africans to earn, invest, and grow their wealth, regardless of their location. This vision aligns with the booming gig economy in Africa, which is growing at an impressive 20% annually. By addressing cross-border payment challenges, Raenest is empowering Africa’s global workforce to participate more fully in the world economy.
Raenest’s $11 million Series A funding marks a pivotal moment in its journey to redefine cross-border banking for Africans. With its innovative solutions, strategic expansion plans, and commitment to financial inclusion, Raenest is poised to play a transformative role in Africa’s fintech landscape. As the company continues to scale, it promises to unlock new opportunities for millions of freelancers, remote workers, and businesses across the continent and beyond.
