Nigerian fintech startup Juicyway, a cross-border payments platform, has raised $3 million in pre-seed funding to expand its operations across Nigeria, the US, the UK, and Canada. The funding will fuel the company’s growth by enhancing its technology, scaling its teams in marketing and business development, and expanding its services.
Key Investors
The funding round was led by P1 Ventures and saw participation from prominent firms and angel investors, including:
- Ventures Platform
- Future Africa
- Magic Fund
- Microtraction
- Angel investors: Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo
What is Juicyway?
Founded in 2021 by Ife Johnson and Justin Ziegler, Juicyway provides a marketplace for businesses to convert local currency to dollars and vice versa for seamless international transactions. The platform operates as a hybrid between Decentralized Finance (DeFi) and Traditional Finance (TradFi), leveraging both blockchain technology and conventional financial systems.
Key Offerings:
- Cross-Border Payments:
- Businesses can open USD, CAD, or stablecoin wallets for transactions.
- Allows payments via stablecoins like USDC and Tether, offering flexibility and reduced costs.
- Liquidity Matching:
- Businesses bringing in foreign currencies (suppliers) are matched with businesses needing FX (buyers).
- Juicyway does not act as a counterparty, ensuring a market-driven pricing model where users can set their prices and order limits.
- Individual Onboarding:
- Recently expanded to serve individuals for outbound payments or forex acquisition.
Juicyway’s Growth Metrics
- Stealth Mode Operations: Since launching in November 2021, the company has grown from processing a single $9 payment to achieving over $1.3 billion in total payment volume (TPV).
- Customer Base: Juicyway serves 4,000+ customers, including remittance companies, market makers, and businesses like IHS Towers.
- Licensing:
- Nigeria: International Money Transfer Operator (IMTO) licence.
- Canada: Money Services Business (MSB) licence.
- UK: Authorized Payment Institution (API) licence.
- US: Phase 1 payments approval in Washington, DC, through partner banks.
Addressing FX Challenges
Juicyway enters a niche market as Nigeria faces persistent foreign exchange (FX) shortages, which have significantly impacted businesses requiring frequent international payments.
How Juicyway Solves FX Problems:
- Liquidity for Cross-Border Transactions:
- Provides near-instant, cost-effective, and compliant FX solutions.
- Dynamic Market Pricing:
- Businesses negotiate prices, ensuring competitive FX rates.
“Every time businesses needed to convert local currency to foreign currency, there just wasn’t a supply for that currency that was near-instant, cheap enough, or compliant,” said CEO Ife Johnson.
Market and Vision
Juicyway positions itself as a platform benefiting diverse use cases:
- Remittance Companies: Use the platform to sell liquidity and disburse funds.
- Businesses: Enable outbound payments for international operations.
The company envisions a platform capable of handling one to two million users across its operating regions, enabling seamless transactions across borders.
“This is a platform that can handle one or two million people across the UK, Canada, and Nigeria… and make money move between one another either directly or indirectly,” said Johnson.
Future Plans
With the pre-seed funding, Juicyway plans to:
- Expand Team and Technology: Invest in its marketing and business development teams while enhancing its tech infrastructure.
- Scale Operations: Increase market penetration in the US, UK, Canada, and Nigeria.
- Grow Customer Base: Focus on both businesses and individuals to drive adoption.
The company also plans to raise its next funding round in the next 18–24 months as it scales further.
Investor Confidence
The funding round underscores strong investor belief in Juicyway’s potential to address critical challenges in cross-border payments.
“We couldn’t be more excited to partner with Ife, Justin, and Idris as they tackle one of the most critical challenges in finance,” said Hisham Halbouny, co-founder and managing partner at P1 Ventures.
Conclusion
Juicyway’s innovative approach to solving Nigeria’s cross-border payment challenges positions it as a game-changer in the fintech space. By leveraging blockchain technology, dynamic pricing, and robust licensing, the startup aims to redefine how businesses and individuals handle international payments across its growing markets.