Fatshimetrie, a Nigerian cross-border payments startup, recently closed a $3 million pre-seed funding round. The startup, founded in 2021 by Ife Johnson and Justin Ziegler, is positioning itself in the market by offering businesses the ability to convert local currency to dollars and vice versa. With this injection of capital, Fatshimetrie plans to strengthen its marketing and business development team, improve its technology, and expand its business to Nigeria, the United States, the United Kingdom, and Canada.
The investment was led by P1 Ventures, with participation from Ventures Platform, Future Africa, Magic Fund, Microtraction, as well as angel investors such as Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo. Fatshimetrie operates as a marketplace for businesses and individuals to perform currency conversions and international transfers. The company’s business model relies on transaction fees and spreads on transactions made on its platform.
“If Companies A comes with naira to get dollars, and Companies B brings dollars, they are matched on the platform and are unknowingly exchanging liquidity. So Fatshimetrie is not a counterparty to the transactions,” explains Ife Johnson, the startup’s co-founder and CEO. With licenses in several key markets, including Nigeria, the UK, the US, and Canada, Fatshimetrie offers businesses the ability to make cross-border payments using stablecoins, such as Tether and USDC, positioning itself as a hybrid payments startup, combining decentralized finance (DeFi) and traditional finance (TradFi).
Since its quiet inception in November 2021, Fatshimetrie has processed a total payment volume of $1.3 billion for over 4,000 customers. The startup claims to cater not only to businesses but also to individuals who need to make international payments or receive supplies in foreign currencies. With a volume-centric approach, Fatshimetrie seeks to democratize access to cross-border financial services, providing its users with the ability to convert their currencies easily and quickly.
In conclusion, the $3 million fundraising enables Fatshimetrie to strengthen its position in the cross-border payments market in Nigeria and beyond. With an innovative approach and a strong team, the company is well-positioned to meet the growing needs of businesses and individuals for international payments.