Investment company, Microtraction, has announced its latest investment. The investment was made in a Ghanaian crypto fintech startup, Bit Sika. According to the Founder of Microtraction, Yele Bademosi, this recent investment shows that the Microtraction team are surely embracing blockchain and its disruptive potential across sectors.
Bit Sika is Microtraction’s first non-Nigerian investment and focuses on money transfers across currencies and geographical borders. Transfers into Africa are usually at exorbitant charge rates, and often come with specific bank affiliation requirements. Bit Sika’s blockchain product allows users to transfer money between currencies and across borders at little or no cost to them.
However, Bit Sika has competitors in the blockchain remittance industry. SureRemit which recently raised an Initial Coin Offering of $7.1 million is a tech company that is also using blockchain to reduce the cost of remitting money back into Africa.
Prior to the investment in Bit Sika, Microtraction has invested in other fintech ventures which include Riby and Wallet.ng. Its earlier investments also include Accounteer, which is an online accounting startup for small and medium scale enterpreneurship ventures, and Sendbox, an online platform that provides delivery services to ecommerce platforms.
According to Microtraction, the recent investment in Bit Sika comes partly as a result of the team’s ability to seek advice, be open to feedback, “and be judicious in implementing said feedback into their product”.
In its announcement, the investment company lauded Bit Sika’s speed of implementing projects saying, “knowing how quickly the Bit Sika team could execute and the traction they were able to achieve each time they released a product gave us a lot of confidence”.
“By using digital currencies and distributed ledger technology (specifically blockchain), Bit Sika is making cross-border payments negligible in cost, instant and auditable.Microtraction
Bit Sika has seen an opportunity to help millions of Africans move money quickly and without complexities. Now, more than ever, businesses across Africa can sell goods and receive money from their customers in other countries with ease.”
Having secured the investment, Bit Sika, founded by Atsu Davoh, is well on its way to deliver blockchain-based services and products that will reduce transaction costs on Africans, as well as deepen the financial inclusion of the continent’s inhabitants.
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