Ghanaian startup Bit Sika, which uses blockchain technology to help users receive money instantly, from anyone, anywhere at zero cost, has secured funding from early-stage VC firm Microtraction to help it grow further.
Users can deposit and remit money across multiple currencies using the app, with all monies deposited in Bit Sika stored in USD credits or stable-coin. This means that if a Bit Sika balance is not used the USD value of that balance never changes. The startup says this serves as a better store-of-value against African local currencies.
The current version of the product allows anyone in Ghana to receive money from anyone in Nigeria – and vice versa – and has attracted around 1,000 users and processed almost US$1 million in transactions.
Bit Sika now hopes it is set for even quicker growth after becoming the first non-Nigerian investment made by early-stage VC firm Microtraction. Founded in 2017, the company invests up to US$65,000 in startups at the very earliest stage of their development, and has so far backed a host of Nigerian startups, including Accounteer, Riby, Thank U Cash, CowryWise, Wallet.ng, Allpro, Stack Dx and Termii.
Microtraction explained why it was attracted to investing in Bit Sika in a blog post.
“By using digital currencies and distributed ledger technology, Bit Sika is making cross-border payments negligible in cost, instant and auditable,” the company said.
“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.”
It is the second round of investment taken on by Bit Sika in 2019, with the startup being one of four African blockchain startups to have taken part in the incubation programme run by global cryptocurrency exchange Binance. This saw it gain US$120,000 in seed funding and help with bootstrapping and achieving product-market fit.