African fintech company Zoona recently secured $15m in a second round of financing since launching in Zambia in 2009. CEO Mike Quinn discusses the business and future plans.
In 2009, Zambian-born brothers Brad and Brett Magrath launched Zoona in Zambia, together with current CEO Mike Quinn. Zoona was initially aimed at trying to solve the problem of payments in the agricultural sector. At the time, Zambia’s cash economy saw 85% of the adult population unbanked.
Meanwhile, in Kenya, mobile money player M-Pesa (see sidebar) started taking off and the Magraths looked at the possible opportunity of also introducing money transfers in the Zambian market.
“We officially launched in April 2009 with a couple of products, one being farmer payments and the other a money transfer product that would help people send money within the country,” Quinn tells finweek. In order to facilitate this, Zoona started setting up agents next to post offices, bus stops and border posts and would work with young entrepreneurs – and people looking for jobs straight out of high school – and provide them with a kiosk.
“We would provide all the funding for working capital that they needed to run their business, and then give them an account on the technology platform we built so that consumers could walk up to these kiosks to send and receive money transfers for any reason that would require them to move money around in the cash economy, such as paying school fees or medical bills,” explains Quinn.
Getting the funding
Over the next three years, they integrated the model, and in 2012 Zoona received a $4m Series A investment, at which point the focus turned onto the money transfer business, which had really taken off.
Denne historien er fra 01 September 2016-utgaven av Finweek English.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra 01 September 2016-utgaven av Finweek English.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
