TLDR:
- Yellow Card raises $33 million in funding.
- Focus shifts from retail to business clients.
- The platform supports around 30,000 businesses in Africa.
- Stablecoins are key to addressing local currency issues.
- Transaction volumes jumped from $1.7 billion to over $3 billion.
- The company aims to improve its API and product offerings.
- Regulatory landscape in Africa is becoming more supportive of crypto.
Yellow Card’s New Funding Round
Yellow Card, a crypto platform founded in the U.S. in 2019, recently announced it has raised $33 million in Series C funding, led by Blockchain Capital. This new investment adds to the total funding of at least $88 million for the platform, which has become the most-funded cryptocurrency exchange in Africa.
Pivot to Business Clients
Initially focused on retail customers, Yellow Card has shifted its attention to the B2B market. CEO Chris Maurice explained that while retail engagement was essential, the business sector showed more significant potential for growth and utility. This pivot aims to support businesses in managing their treasury and accessing stablecoins more effectively.
Challenges with Retail Focus
During its early years, Yellow Card served a substantial number of retail customers. However, the costs associated with managing retail users proved unsustainable. Now, with increased transaction amounts, the platform is catering primarily to businesses, allowing for handling larger volumes and better margins.
Stablecoins: A Solution for Local Currency Issues
One of the driving forces behind Yellow Card’s growth is the increasing adoption of stablecoins. Many African countries face volatile currencies, making stablecoins like USDT and USDC valuable tools for businesses. They help mitigate inflation and facilitate cross-border payments.
Growing Demand and Revenue Increase
As the utility of stablecoins becomes more evident, Yellow Card’s transaction volumes surged from $1.7 billion early last year to over $3 billion. Consequently, the company’s revenue has increased significantly, earning them well into the eight figures since the start of 2023.
Future Plans and Regulatory Engagement
Yellow Card sees a bright future for stablecoins and aims to strengthen its offerings through better products and technology. The company highlights the importance of maintaining open communication with regulators, who are becoming more innovative in Africa compared to other regions.
In summary, Yellow Card’s shift to focus on businesses marks a significant evolution in its strategy. By harnessing the power of stablecoins, the platform not only serves businesses but also offers benefits to the wider population, making essential goods more accessible in Africa.