Scale, a South African fintech startup, has successfully raised $700,000 in pre-seed funding, marking a crucial step forward in its quest to transform Africa’s payments ecosystem. The round was led by 54 Collective and First Circle Capital, with participation from Sunny Side Venture Partners and a group of angel investors. This significant investment highlights growing confidence in Scale’s innovative solution for simplifying the card issuance process across the continent.
Founded in 2022 by Barbara Woollams and Miranda Perumal, Scale specializes in Infrastructure-as-a-Service (IaaS), enabling businesses to launch card products swiftly and efficiently. Traditionally, this process takes up to 18 months, but with Scale’s platform, businesses can roll out cards in just a few weeks. This agility is especially valuable in Africa, where payment card penetration is among the lowest globally. Scale’s technology fills this gap, empowering businesses to enter the payments market with ease while ensuring scalability and long-term sustainability.
The newly secured funds will be instrumental in expanding Scale’s presence into key markets such as Kenya, Zambia, and Côte d’Ivoire, where there is growing demand for streamlined fintech solutions.
Additionally, Scale is set to further develop Scale Execute, its card-issuing orchestration platform that was developed in partnership with Visa and Mastercard. This platform simplifies collaboration between banks, payment networks, and technology providers, making it easier for businesses to offer comprehensive payment solutions.
CEO Miranda Perumal expressed enthusiasm about Scale’s future, noting the startup’s increasing partnerships with major players in the financial services industry. These collaborations position Scale as a key player in Africa’s rapidly expanding fintech landscape, with the African fintech sector projected to reach $65 billion by 2030.
Read also: AmakaSTUDIO has successfully secured funding to support its growth and expansion.
Despite the dominance of cash transactions across the continent, Scale is betting on the growth of card-based solutions. By 2029, card issuance platforms are expected to handle 35% of all card-based transactions in Africa. Scale’s solutions aim to make card issuance simpler and more accessible for businesses, providing protection against fraud and addressing high processing costs, two major pain points in the industry.
Investors are optimistic about Scale’s growth trajectory, with Hetal Patel, Chief Investment Officer at 54 Collective, praising the leadership team for their innovative approach and commitment to delivering world-class service. “Scale is well-positioned to reshape the future of card issuance in Africa, offering a valuable solution for fintech companies eager to launch or enhance their card services,” Patel remarked.
With its innovative platform, strategic partnerships, and growing investor backing, Scale is poised to become a formidable player in the B2B card issuance space across Africa.
Comments 1