Klasha, a Nigerian-based startup, has raised an additional $2.1 million to finalize its $4.5 million seed round, bolstering its position in Africa’s growing cross-border e-commerce market. The new investment comes from a variety of international backers, including Amex Ventures, the strategic investment arm of American Express, marking its first foray into the African startup ecosystem.
The round also saw continued support from other prominent investors like Global Ventures, a VC firm with a focus on the MENA region. Klasha’s CEO, Jessica Anuna, noted that the involvement of Amex Ventures, alongside its participation in global tech giants like Stripe, reflects growing interest in Africa’s potential for digital commerce.
Founded in 2021, Klasha is addressing the challenges faced by African merchants and consumers in the cross-border e-commerce space, which is valued at over $25 billion. The startup’s suite of products includes KlashaCheckout, which enables merchants in six African countries — Nigeria, Zambia, Tanzania, Uganda, South Africa, and Kenya — to receive payments in G20 currencies. KlashaWire also allows local merchants to make payments to suppliers in their native currencies, with transactions completed within three days.
Additionally, Klasha offers a Payment Links feature for merchants without storefronts to accept payments through shared links.
The company has experienced impressive growth, with merchant acquisitions increasing by 20% month-on-month and transaction volume rising by 17.5%. Klasha has processed over 210,000 transactions, ten times more than its figure from last October, serving more than 1,700 merchants. The company earns revenue through sales commissions and merchant subscriptions for analytics services.
Klasha’s consumer-facing product launched virtual card services in Nigeria, Ghana, and Kenya, allowing users to fund cards with local currencies, as well as send and receive money. The company plans to upgrade the app, KlashaCart, which will soon allow African consumers to shop from international retailers like ASOS and Zara, using African currencies and receiving products delivered to their doorsteps.
“The mission of Klasha is to simplify cross-border commerce between Africa and the rest of the world, while also making African consumers more accessible to global markets,” said Anuna. The app, currently only available in Nigeria, allows consumers to purchase items from international stores using naira and have them delivered within 7-14 days through Klasha’s logistics network. The platform is expected to launch in Kenya in the near future, with the consumer base growing to 45,000, a fourfold increase since October.
Despite its rapid progress, Klasha sees significant room for expansion. Sacha Haider, a partner at Global Ventures, pointed out the vast opportunity in enhancing the user experience for Africa’s digital shoppers, with projections suggesting over 500 million digital buyers on the continent by 2025.“We’re excited to support Klasha in making payments easier for merchants and customers, and helping scale businesses across borders,” said Matt Sueoka, the global head of Amex Ventures.
