Julaya Raises $2M to Digitize Business Payments in Francophone Africa

The Rise of Mobile Money and Julaya's Expansion

Globally, there are now over 1 billion mobile money accounts in use. Africa is a leading force in both the value and volume of these transactions, primarily driven by the success of M-Pesa, which is widely utilized in East Africa.

Significant growth is also occurring in other African regions. In 2019, West Africa reported the highest number of active mobile money services, totaling 56 million accounts.

Mobile Money Penetration in Ivory Coast

In Ivory Coast, a major mobile money market within Francophone Africa, 75% of the population utilizes mobile money accounts. This contrasts sharply with the 20% who possess traditional bank accounts.

This substantial difference underscores the region’s considerable demand for mobile money services.

Julaya: A Fintech Disruptor

While telecommunication companies have traditionally dominated mobile money services throughout much of sub-Saharan Africa, several startups are striving to enhance the customer experience.

Julaya, an Ivory Coast-based fintech company, is one such innovator. The company recently announced a $2 million pre-Series A funding round to facilitate expansion of its products across West Africa.

Founding and Early Days

Julaya was established in 2018 by Mathias Léopoldie and Charles Talbot. Prior to founding Julaya, they gained experience at French payment fintech LemonWay, working on service implementation in Mali and Burkina Faso.

This experience provided them with valuable insights into the workings of mobile money across Francophone Africa. LemonWay functions as a payment solution for marketplaces.

While expanding LemonWay’s services in both countries, the founders observed the significant potential for businesses to reach the unbanked population through the widespread adoption of mobile money by telecom operators.

Digitizing Trade Payments

Julaya was initially conceived to digitize trade payments, but launched in Ivory Coast rather than Mali or Burkina Faso.

The platform empowers businesses to streamline their accounting processes and improve operational efficiency by digitizing payments to employees and suppliers, moving away from cash-based transactions.

Facilitating Disbursements

The company assists African businesses and institutions in disbursing payments to both mobile money and mobile banking wallets.

This is achieved through collaborations with telecom operators and other fintech startups operating within the region.

The Impact of the Pandemic

“Mobile money is reaching a mature stage, with business and public institution use-cases presenting new growth opportunities,” stated Talbot. “The pandemic has accelerated the adoption of digitized payments, and increased competition within West Africa is making digital finance more accessible and reliable.”

Challenges and Opportunities

Despite the progress, partnerships have presented challenges. Payments technology in Francophone Africa remains fragmented, and telecom APIs are still developing and can be unreliable.

Distribution channels also pose difficulties, making it challenging to achieve widespread sales at a low cost. Furthermore, a lack of trust in digitized payments among businesses remains a hurdle.

Addressing Market Concerns

Léopoldie noted that wire transfers in Ivory Coast can take one to three days, requiring customers to verify with their bank branch. Businesses often lack confidence in digital experiences due to occasional shortcomings, and educating the market is costly.

He also highlighted the difficulty in finding talent with a startup mindset.

Customer Base and Processing Volume

Despite these obstacles, Julaya has secured customers ranging from small and medium-sized businesses (SMBs) to large corporations and government institutions.

Currently, the company processes over $1.5 million in transactions monthly for 50 clients, including Jumia, SODECI, the Ministry of Education of Ivory Coast, and the World Bank.

Funding History and New Investment

Julaya previously secured a pre-seed investment of $250,000 in 2018 and a seed investment of $550,000 in 2019, both from angel investors.

The pre-Series A round includes participation from venture capital firms, including Orange Ventures and MFS Africa Frontiers, as well as Saviu Ventures, Launch Africa, 50 Partners Capital, and several angel investors from Africa and Europe.

The new investment will be used to expand Julaya’s market share in Ivory Coast and to launch new digital payment products, as well as to extend its reach across West Africa.

Orange Ventures' Strategic Investment

Orange, with over 20 million mobile money users across 15 African countries, recently launched a mobile banking platform in Ivory Coast, exceeding 500,000 users.

This strategic investment in Julaya, marking its third in an African fintech startup following investments in South Africa’s Yoco and Senegal’s SudPay, reflects Orange’s commitment to the African fintech landscape.

Orange's Vision for Fintech in Africa

“Africa’s fintech environment is characterized by its competitiveness and dynamic growth,” explained Habib Bamba, Director of Transformation, Digital and Media at Orange Ivory Coast.

“Through its technology investment fund, Orange Group aims to participate in this expansion by supporting fintechs like Julaya, targeting local technology leaders driving the transition to a more digital and responsible world.”

Maintaining a Competitive Edge

Julaya faces competition from Orange, other telecom operators, fintechs, and banks. The company believes that prioritizing user experience will be key to maintaining its position in the market.

“Reliable customer support and a predictable, smooth online experience are paramount,” Léopoldie emphasized. “Transparency regarding transaction success rates builds trust, even if the rate isn’t perfect.”