Nigerian Blockchain Startup Raises $2 Million In Pre-Seed Round

A blockchain startup based in Nigeria, Bitmama had successfully managed to use a pre-seed extension for raising $1.65 million.

Now, the startup recently closed its pre-seed funding round with $2 million and two venture capital firms focused on Africa were leading it, namely, Launch Africa and Unicorn Growth Capital.

New funding

Last year in October, Bitmama managed to raise $350,000 and it added a sum of $1.65 million that saw its pre-seed funding round come to an end at $2 million.

Other than the two venture capital firms mentioned above, the fundraising round also included existing investors and some new ones as well.

These were Greenhouse Capital, Angellist Ventures, Thrive, Africa, Enrich Africa, Chrysalis Capital, Five35 Ventures, ODBA, Tekedia Capital, Flori Ventures, and Adaverse.

There were also some angel investors who participated in the funding round and these included Honey Ogundeyi, Marek Olszewski, and Rene Reinsberg.

The report indicated that the blockchain startup is planning on using the funds for integrating its product offerings as well as expanding its team.

In addition, the funds would also be used to help Bitmama expand on the use of crypto in the African continent.

Buying and selling crypto

The chief executive and founder of Bitmama, Ruth Iselema said that they had launched the blockchain startup for making it easy for everyone to buy and sell crypto in the African continent.

However, the CEO said that with time, they have identified a couple of use cases where this technology can be used to provide solutions.

According to the report, Bitmama has identified several use cases and these include using crypto to pay for utilities, or for buying airtime.

The startup also said that it aims to assist small businesses that have to deal with foreign exchange restrictions.

It plans on doing so through virtual dollar cards that can be used by Nigerians for making purchases internationally.

Meanwhile, the report also quotes Iselema who said that Bitmama is planning on introducing a number of innovative products that would be the first ones in the market.

Crypto regulation

The popularity of cryptocurrencies has exploded in Nigeria and this is quite apparent in terms of the number of users and entities dealing with crypto.

However, this has obviously given rise to the most important question i.e. crypto regulation. While Nigeria has introduced some laws pertaining to this sphere, experts believe improvement is needed.

Recently, some legal experts had come forward and indicated that Nigeria needs to work on making upgrades to its crypto regulatory framework in order to improve oversight of the crypto market.

This is a must in order to provide protection to consumers and investors operating in the space and to minimize the risks.

This is a concern shared by many regulatory authorities, not just those in Nigeria. Authorities all around the globe are talking about crypto regulation.

After all, the market appears to be becoming quite widespread and it can no longer be ignored.