Nigerian Web3 startup Nestcoin raises $1.9m to develop its digital wallet, Onboard

DeFi firm Nestcoin has announced its successful raise of $1.9M which it brands as a strategic funding round. According to a press release shared with Technext, the round was led by Hashed Emergent, with participation from a global consortium of investors including Adaverse, Base Ecosystem Fund, Alter Global, CMT Digital, Magic Fund, 4DX Ventures and participating angels. 

Importantly, the release says the funding round will enable the company to strengthen its balance sheet. Recall that the startup was a victim of the FTX exchange debacle spillover late last year.

Funding round to fuel Onboard Wallet Growth

Nestcoin says it is raising this capital to focus on building Onboard, a digital money app that provides access to financial services. Co-Founder and CEO of the company, Yele Bademosi stated:

“We firmly believe that access to high-quality financial services should be universally available, regardless of one’s geographical location. We are committed to achieving this goal by creating a delightful and simple to use self-custody digital wallet”.

Related post: Nigerian startup Nestcoin lays off staff, declares FTX held assets

Adaverse Founding Partner, Vincenf Li said:

“Nestcoin represents the vanguard of a financial revolution in Africa, where borders have transformed from barriers into bridges of opportunity. Onboard is a brilliant next-gen concept poised to contribute to sustainable economic models, perfectly aligning with our mission for sustainable development…. We are proud to be part of Nestcoin’s journey in redefining financial access through the innovative Onboard Wallet.”

Also, CEO & Managing Partner at Hashed Emergent, Tak Lee disclosed his enthusiasm for Nestcoin saying:

“We’re excited to support Nestcoin as we are confident about the founding team’s ability to create a retail crypto product for African users given their impressive track record with products like Bundle and Carbon. 

The platform’s user-friendly design along with a self-custody infrastructure is precisely what Africa, one of the youngest and fastest-growing populations globally, requires for large-scale adoption of crypto. This approach to product development also aligns seamlessly with our web2.5 thesis.”

Nestcoin

Nestcoin was launched in February 2021 to build, invest and operate web3 and non-custodial products for customers in frontier markets across Decentralised Finance (DeFi), media, digital art, and gaming had to lay off some employees when it got affected by the FTX contagion in November 2022. 

Yele Badamosi, CEO of the company disclosed via a statement that his company held assets (cash and stablecoins) in the now-defunct crypto exchange to manage operational expenses. With that unfortunate incident, Nestcoin had to say goodbye to a substantial portion of its employees. With a significant wage cut for the remaining staff.

Nothing much was heard about Nestcoin until four months ago when Metaverse Magna (MVM), an African gaming community which was incubated by Nestcoin, announced that it had raised $3.2 million.

The gaming firm, which allows players to earn and get rewarded in crypto with its CEO, Yemi Johnson, announced the transformation of the company from a P2E gaming guild to a social gaming and eSport platform called Hyper.

Related post:

Nigeria secures $500m for local funding of digital economy

According to Yele Bademosi:

“Nestcoin’s decision to spin out MVM showcases our dedication to promoting innovation and empowering emerging businesses that make crypto accessible. By giving MVM the autonomy to steer its own path, Nestcoin not only accelerates MVM’s progress but also fuels the expansion of the entire web3 ecosystem.”

The Web3 startup has now found itself in the spotlight once more with this fresh funding round. With Onboard – a digital money app that provides modern, world-class financial services:

“Onboard Wallet provides a seamless user experience, a seedless wallet, and an easy way to transfer funds directly to a bank account without going through a centralised exchange. This marks just the beginning of Onboard’s commitment to providing its community with simple and delightful financial options that reduce reliance on traditional trust-based systems.”  – Nestcoin announcement.