Busha, a cryptocurrency exchange based in Nigeria, has raised $4.2 million in seed funding to help it grow

Busha, a cryptocurrency exchange based in Nigeria, has raised $4.2 million in seed funding to help it grow

With the help of Jump Capital, Busha, a Nigeria-based digital platform for the buying and selling of cryptocurrencies as well as the storage of cryptocurrency, has raised $4.2 million in seed funding.

Cadenza Ventures, Blockwall Capital, CMT Digital, Greenhouse Capital, Raba Capital, and other investors were also in attendance at the financing round, as were other investors.

As stated by the company, it intends to use the new funding to strengthen its market position in Nigeria, which it claims is Africa's largest crypto economy and where the majority of its users are located.

With over 200,000 users, the cryptocurrency exchange, founded in 2018 by CEO Michael Adeyeri and Chief Product Officer (CPO) Moyo Sodipo, claims to be the largest in Africa, with an ambition to "onboard the next million Africans" to the cryptocurrency economy.

According to Adeyeri, "We've seen the tangible difference that cryptocurrency can make in our users' financial freedom, and we're extremely motivated to expand this to more people on the continent."

As Sodipo explained in an email to TechCabal, Busha is currently expanding into additional countries across West Africa and will launch when its 30-person team is confident that they can protect users while also assisting authorities with compliance efforts.

"In the short term, we're concentrating on the entire West African corridor, but we're also looking forward to exploring opportunities in East Africa, particularly Kenya and Uganda. We're currently scouting those areas for potential safe expansion opportunities, so stay tuned "He went on to explain.

This week, the startup released an updated version of its app that allows users to buy cryptocurrency for less than $1 (550) and includes features such as one-click limit orders and automated recurring purchases.

A savings feature that will allow users to earn interest on their cryptocurrency will be launched next month or early next year, and a feature that will allow users to spend their cryptocurrency at select online and offline retailers will be launched later this year. In the latter case, SureGifts, a company that specializes in gift cards, is collaborating on the development.

When it comes to crypto adoption, Busha's inclusive offering is consistent with the company's stated mission of making cryptocurrency more accessible to a wider population while also decreasing entry barriers.

In Sodipo's words, "we take pride in being the first to market with tangible innovations such as instant payouts and human customer service available 24 hours a day, seven days a week." We will be able to complete our tasks more quickly, improve our security, and establish a clear leadership position in our target markets as a result of this funding.

A lot of young Nigerians are getting into cryptocurrency trading as a way to improve their financial mobility and wealth creation prospects in the face of harsh economic realities, and Busha's offering is sure to appeal to them.

Take, for example, Paxful, an international peer-to-peer bitcoin marketplace, where over a million Nigerians have registered accounts to put this in context. As a result, Nigeria ranks second only to the United States in terms of bitcoin trading volume, accounting for more than 25% of the platform's total customer base.

"Nigeria and the African continent represent one of the most promising regions for crypto to make a significant impact in bringing financial freedom to millions of people," Peter Johnson, Partner at Jump Capital, explained the investment in Busha. "Nigeria and the African continent represent one of the most promising regions for crypto to make a significant impact in bringing financial freedom to millions of people," Johnson added.

According to Busha, as more Africans enter the cryptocurrency space, the company plans to leverage new investor capital to offer "market-beating prices and increased value to its customers while remaining compliant and regulated," according to the company's website.