Klasha Raises $2.4M to Expand Cross-Border Commerce in Africa

The Expanding E-commerce Landscape in Africa and Klasha's Role

Industry observers predict that the total value of e-commerce across Africa will attain $29 billion in the coming year. Despite this projected growth, significant challenges remain for African consumers when making international online purchases.

Existing Payment Challenges

Common payment methods utilized by Africans include cards, M-Pesa, bank transfers, and mobile money. While payment gateways have improved the overall experience compared to a decade ago, further advancements are still necessary to streamline the process.

Introducing Klasha: Facilitating Cross-Border Commerce

Klasha, a startup with operations in Lagos and San Francisco, has identified a key opportunity within cross-border commerce. The company provides a suite of integrations and APIs designed to simplify international transactions.

Seed Funding and Expansion Plans

Recently, Klasha secured $2.4 million in seed funding to support its scaling efforts. This investment will be instrumental in broadening the company’s reach and enhancing its service offerings.

Klasha's Evolution and Core Features

From Fashion Focus to Comprehensive Payment Solutions

Founded in 2018 by Jessica Anuna, Klasha initially concentrated on enabling African consumers to directly purchase goods from international fashion retailers. However, the company’s scope has broadened considerably.

Klasha now offers a comprehensive range of features and a revised business model focused on facilitating payments for Africans, allowing them to acquire desired products – excluding perishables – regardless of their geographical location.

Key Products: Klasha Checkout and KlashaWire

Klasha Checkout functions similarly to established platforms like Checkout, enabling international merchants to accept payments from Africa in local currencies. Unlike some competitors, Klasha supports payment methods commonly used by Africans, including bank accounts, cards, USSD, M-Pesa, and mobile money.

KlashaWire allows consumers to pay using African currencies – such as the naira, cedi, and shilling – through various payment methods. Klasha then remits funds to merchants in major currencies like the U.S. dollar or euro within two business days.

Additional Features: Payment Links and Mobile Application

Merchants without dedicated storefronts can leverage Klasha’s payment link feature to accept payments by sharing links via email or social media platforms.

Klasha’s mobile application, available in Nigeria, Ghana, and Kenya, empowers users to send and receive money, as well as create and fund virtual cards with their local currencies.

Integrating Logistics for a Seamless Experience

Beyond Payments: A Holistic Approach

In addition to its payment solutions, Klasha is also actively involved in logistics. Anuna emphasizes that combining payments and logistics creates a more complete and accessible global e-commerce experience for African consumers.

Merchants have expressed a need for streamlined shipping solutions to Africa, and Klasha aims to address this demand by providing a seamless end-to-end logistics experience.

Efficient Delivery Times

Through partnerships with third-party logistics providers, Klasha facilitates product delivery from Europe or the U.S. to African customers in just five to nine days – a timeframe that is notably faster than the industry average of up to two weeks.

Growth, Revenue, and Investment

Impressive Growth Metrics

Since its relaunch in May, Klasha has processed over 20,000 transactions and is experiencing a month-on-month growth rate of 366%.

Revenue Streams

Klasha generates revenue through sales commissions and subscription fees paid by retailers for access to platform analytics, which provide insights into product performance across different markets.

Strategic Investment and Partnerships

Alison Lange Engel, a partner at Greycroft, highlights Klasha’s technology as enabling seamless cross-border transactions, crucial for Africa’s rapidly expanding online commerce sector.

Greycroft’s investment in Klasha marks their third significant venture in Africa, following investments in Flutterwave and AZA Group.

The Founder's Journey and the Importance of Diversity

Anuna's Background and Vision

Jessica Anuna, 29, brings valuable industry experience to Klasha, having previously worked at Amazon and Shopify in London, and having founded a logistics company in China.

Her experience in facilitating exports from China – Africa’s largest trading partner – revealed a need for more efficient payment solutions for Nigerian merchants.

Addressing Funding Disparities

Anuna acknowledges the challenges faced by Black female founders, who receive only 0.6% of global venture funding. She believes, however, that investors are increasingly recognizing the potential of female-led fintech startups.

Investor Support

In addition to Greycroft, Klasha’s investors include Seedcamp, Practical VC, Plug and Play, First Fund, 2.12 Angels, MiLA Capital, Berrywood Capital, AVG Basecamp Fund, and Expert Dojo. Angel investors Joe Cross of Wise and Michael Pennington of Gumtree have also contributed.

Future Expansion and Target Markets

Expanding Reach and Customer Base

Klasha aims to facilitate payments for major retailers like ASOS, Zara, and H&M from African consumers. With a current customer base of 10,000 across Nigeria, Ghana, and Kenya, the company plans to expand into three additional African countries before the end of the year.