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January 10, 2024

Cleva's Financial News: Navigating Hyperinflation with a $1.5 Million

Nigerian fintech trailblazer is set to revolutionize banking platforms for individuals and businesses across Africa

Step into the world of Cleva, the Nigerian fintech disruptor on a mission to reshape the financial landscape for African individuals and businesses. In a funding triumph, Cleva has secured a stellar $1.5 million in pre-seed funding, marking a significant milestone in its quest to redefine banking platforms in Africa. The investment chorus was led by San Francisco-based 1984 Ventures, known for backing Revv and Kyte, and featured prominent players like The Raba Partnership, Byld Ventures, FirstCheck Africa, and angel investors. Notably, the financing dance also saw the participation of Y Combinator, elevating Cleva's status on the global fintech stage.

Conceived in 2023 by the visionary duo of Tolu Alabi and Philip Abel—MIT and Stanford alums respectively—Cleva isn't just a fintech startup; it's a response to the persistent challenges Africans face in receiving international payments amidst hyperinflation hurdles. With roots in major tech giants like Amazon, Stripe, AWS, and Twilio, both founders bring a wealth of technical and product experience to the table.

Initially launched to empower Nigerians, Cleva serves as a financial bridge, allowing users to open USD accounts with a streamlined onboarding process requiring a Bank Verification Number (BVN) and a government-issued ID. The fintech has facilitated the opening of thousands of US-based accounts for Nigerians, processing over $1 million in monthly payments and experiencing remarkable month-on-month revenue growth of 100%.

Cleva's revenue model is not just a dance; it's a ballet of financial innovation. The startup earns revenue when users convert and exchange their funds in USD accounts for the local currency. Charging a modest 0.9% fee on deposits into customers' USD accounts, Cleva stands out with capped fees at $20, a rarity in an industry where competitors often charge an uncapped 1% fee, regardless of the transaction amount.

Beyond the funding fanfare, Cleva has an encore of products lined up, promising to diversify revenue streams. From USD cards to savings in US assets, Cleva is gearing up to tackle common fintech challenges, including selecting the right banking partner and nurturing talent. The startup envisions a product that enables users to create professional invoices and send USD globally, unlocking new dimensions in the world of financial empowerment.

As the curtain falls on this financial overture, Cleva emerges not just as a Nigerian solution but as a global answer to a universal problem. Tolu Alabi, co-founder of Cleva, sums it up, "The problem that we're trying to solve, enabling people to receive international payments, is not a Nigerian problem nor an African one. It's a global problem." With an unwavering vision and a financial symphony echoing across borders, Cleva stands poised to orchestrate a revolution that transcends continents.

Josefina Dipaolo
Josefina Dipaolo
Content writer at TechNews180
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