Juicyway, a Nigerian cross-border funds startup that helps companies get FX for worldwide transactions, has raised $3 million in pre-seed funding. The corporate will use the funding to broaden its advertising and marketing and enterprise improvement groups, enhance its know-how, and scale its enterprise in Nigeria, the US, the UK, and Canada.

P1 Ventures led the spherical with participation from Ventures Platform, Future Africa, Magic Fund, Microtraction, and angel traders Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo.

Based in 2021 by Ife Johnson and Justin Ziegler, Juicyway is a market that permits companies and people to transform native foreign money to {dollars} and vice versa. Juicyway serves each suppliers—companies which might be bringing overseas foreign money (like USD or CAD)—and consumers—companies that want to purchase the foreign currency from them and make outbound transfers. It makes cash from transaction charges and spreads from transactions on its platform.

“Companies come to us for 2 causes; the primary kind of enterprise desires to take native foreign money, convert it to US {dollars}, and make worldwide funds through [our] banking companions [demand side]. The second kind of companies wish to leverage the accounts we offer to deliver cash into the continent and convert it into native foreign money to make disbursements [supply side],” stated Ife Johnson, Juicyway co-founder and CEO.

The corporate’s increase comes at a time when entry to FX stays a problem for Nigerian companies coping with frequent heavy worldwide transactions. Juicyway is without doubt one of the many Nigerian upstarts pitching to resolve the nation’s cross-border funds downside.

Juicyway permits companies to make cross-border funds utilizing stablecoins—like Tether and USDC—positioning it as a hybrid decentralised finance (DeFi) and conventional finance (TradFi) funds startup. When a enterprise onboards on Juicyway, they’ll select to open a US Greenback (USD), Canadian Greenback (CAD), or a stablecoin pockets.

When Buyer A is available in and deposits naira to get {dollars}, and Buyer B brings in {dollars}, they get matched on the platform and alternate liquidity with out realizing it. This fashion, Juicyway just isn’t a counterparty for the transactions.

Companies can set the costs and order limits they wish to promote their foreign currency. Different companies that want FX can purchase the foreign currency in the event that they match the asking value. This market-influenced pricing system can permit companies to get good FX offers.

“[We saw a problem where] each single time companies wanted to transform native foreign money to overseas foreign money, there simply wasn’t a provide for that [foreign] foreign money that was near-instant, low cost sufficient, or compliant sufficient to resolve their wants,” Johnson instructed TechCabal.

Juicyway has been working in stealth mode since November 2021 when it first processed its first $9 cost. Since then, it claims to have processed $1.3 billion in complete cost quantity (TPV)—a metric that Juicyway considers as its North Star—for over 4,000 prospects.

The startup operates in 4 markets: Nigeria, the UK, the US, and Canada. Juicyway holds licences in all these markets: an Worldwide Cash Switch Operator (IMTO) licence in Nigeria, a Cash Companies Enterprise (MSB) licence in Canada, and an Authorised Fee Establishment (API) licence within the UK. It operates by means of accomplice banks within the US, the place it has additionally acquired a part 1 funds approval in Washington DC.

The corporate lately expanded its companies to people, with Johnson saying they wanted “important mass” to check and broaden their platform. People needing to make worldwide funds or obtain foreign exchange provide also can onboard on Juicyway. The startup plans to develop its buyer base within the coming months by growing its advertising and marketing efforts.

“This can be a platform that may deal with one or two million folks throughout the UK, Canada, and Nigeria—all current in a single platform—and earn money transfer between each other both instantly or not directly,” stated Johnson.

Johnson defined that the corporate operates in a distinct segment market that advantages each remittance firms and market makers. For instance, remittance firms like RemitChoice use the platform to promote liquidity and make disbursements, whereas companies like IHS Towers use it for outbound funds.

“We couldn’t be extra excited to accomplice with Ife, Justin and Idris as they sort out one of the important challenges in finance. At P1 Ventures, we search audacious and distinctive founders like them—visionaries who intention to redefine industries and empower rising markets,” stated Hisham Halbouny, co-founder and managing accomplice at P1 Ventures.

The corporate might be seeking to increase once more within the subsequent 18–24 months.