Ejara Raises $2M to Expand Crypto & Investment in Francophone Africa

Cryptocurrency Adoption Trends in Africa

The rate at which cryptocurrency is embraced across Africa demonstrates significant regional differences. Nations grappling with currency instability, such as those utilizing the naira, are witnessing substantial levels of engagement. Conversely, areas employing the CFA franc exhibit comparatively limited adoption rates.

Francophone Africa: A Nascent Crypto Market

Francophone Africa, encompassing a population exceeding 200 million, represents a remarkably crypto-friendly market within the African continent. However, the potential of this market remains largely untapped, with relatively few companies actively capitalizing on its opportunities. This situation positions the region as a potential next hub for both mobile money solutions and investment applications throughout Africa.

Ejara Secures $2 Million in Seed Funding

Recognizing this potential, Ejara, a company established just one year ago by Nelly Chatue-Diop, has successfully raised $2 million in seed funding. This investment aims to spearhead the integration of cryptocurrency and investment services within the region.

Investors Back Ejara's Vision

CoinShares Ventures and Anthemis Group spearheaded the funding round. They were joined by Mercy Corps Ventures, Lateral Capital, LoftyInc Capital, and NetX Fund. Furthermore, participation came from two angel investors – Pascal Gauthier of Ledger and Jason Yanowitz of Blockworks – alongside a syndicate social fund.

A Return to Roots Drives Innovation

Founder and CEO Chatue-Diop spent a decade studying and holding executive positions in Europe before feeling compelled to return to Francophone Africa to launch a venture. This decision stemmed from a combination of past experiences and emerging opportunities.

The CFA Franc Devaluation and its Impact

Chatue-Diop’s personal experience growing up in Douala, Cameroon, was profoundly impacted by the devaluation of the CFA franc by France in 1994. She recounts how this event plunged her family, along with millions of others, into a severe financial crisis.

“I was very young, and we were part of the middle class. Suddenly, all our savings diminished, and the government was even unable to pay salaries,” she shared with TechCrunch. “Even at that age, I questioned how we could have done everything correctly and still find ourselves in such a predicament. The experience remained with me.”

Blockchain as a Solution

In 2015, Chatue-Diop discovered blockchain technology and believed it offered an ideal solution to the challenges she had witnessed growing up. “It showed me that individuals could regain complete control over their savings and income, protecting and growing their wealth,” she explained.

Partnership and Launch of Ejara

Subsequently, she collaborated with Baptiste Andrieux, a long-time friend and serial entrepreneur, to establish Ejara in Cameroon and throughout the broader Francophone region.

Democratizing Investment Access

Currently, cryptocurrency access in Francophone Africa is largely limited to a select few with the means to diversify their assets. Ejara aims to dismantle this barrier, enabling the average French-speaking African to invest with as little as 5,000 CFA (~$9).

“The inherent transparency and security of blockchain, coupled with the widespread adoption of mobile banking in Africa, made it clear that a blockchain-based mobile investment platform was the key to expanding financial inclusion,” stated the CEO. “However, as numerous crypto companies emerged, I noticed very few were addressing the specific needs of Francophone Africans like myself.”

Control and Custody of Assets

The core principle behind Ejara’s launch is the concept of full control over one’s assets. A common discussion point within the cryptocurrency space revolves around wallet choices and the custody of private keys.

Custodial wallets involve third-party companies holding private keys, while non-custodial wallets empower users to own and manage their own keys. Despite the emphasis on control in crypto investing, many African crypto platforms offer custodial wallets, which limit user control.

Prioritizing Security and Ownership

Ejara emphasizes security, privacy, and ownership, and is therefore implementing non-custodial wallets for its users. This will allow them to securely buy, sell, exchange, and store their crypto investments.

Furthermore, the company intends to expand its offerings to include other asset classes, such as fractional shares, stocks, and commodities.

Current User Base and Partnerships

Ejara currently serves over 8,000 users from Cameroon, Ivory Coast, Burkina Faso, Mali, Guinea, and Senegal, as well as French-speaking Africans residing in the diaspora (Europe, Asia, and the U.S.). A partnership with crypto payment infrastructure company MoonPay facilitates remittances to friends and family in Africa. All of this has been achieved without a marketing budget, according to the CEO.

User Segmentation

Chatue-Diop categorizes her users into two primary groups: those who utilize the platform to save for future goals and business owners who conduct frequent transactions.

“In Africa, many individuals lack a traditional retirement safety net, and some customers use Ejara for that purpose. We also have mothers who invest in their children’s college education through the platform. A smaller segment of our customer base consists of wholesalers who use crypto to finance and purchase goods from overseas suppliers,” she explained.

Future Plans with Seed Investment

The seed investment will be strategically allocated towards accelerating growth, deploying features outlined in the company’s roadmap, and expanding the product and technology teams.

Industry Perspective on Francophone Africa

Meltem Demirors from CoinShares highlighted the significant opportunity within Francophone Africa and the current lack of funding in the region. Despite representing approximately 25% of the continent’s population, startups in the area have attracted less than 1% of venture capital. However, she believes Ejara’s funding round signals a positive shift, particularly within the largely unexplored fintech landscape.

“We are excited to collaborate with Nelly and the Ejara team to deliver financial services through non-custodial wallets, offering a new level of trust and transparency to Francophone savers and investors,” Demirors stated.

Anthemis’ Investment Rationale

Ruth Foxe Blader, partner at Anthemis, explained that the firm was particularly impressed by Ejara’s commitment to educating individuals in Francophone Africa about digital assets and democratizing wealth creation opportunities.