HoneyCoin secures $4.9m funding to power cross-border payments with stablecoin

HoneyCoin, a Nairobi-based crypto-powered fintech startup, has secured $4.9 million in seed funding. The round was led by Flourish Ventures, with participation from Visa, TLcom Capital, Stellar Development Foundation, Lava, Musha Ventures, 4DX Ventures, and Antler. 

The investment will fuel HoneyCoin’s mission to transform cross-border payments using stablecoin technology, driving faster, cheaper, and more compliant financial solutions across Africa and global markets.

This is a follow-on investment for Flourish Ventures. They first backed HoneyCoin in 2021. The firm manages an $850 million fund. Their focus is on fairer financial systems in Africa, with cross-border payments and remittances as top priorities.

Efayomi Carr, Principal at Flourish Ventures, praised the startup. “We first backed HoneyCoin in 2021 based on David’s technical expertise and regulatory vision,” Carr said. “Since then, he’s built a licensed, profitable, and high-growth infrastructure platform powering nearly 300 financial institutions and processing billions in transactions annually.”

Carr added, “This follow-on investment reflects our deep confidence in HoneyCoin’s results to date and potential to lead the next generation of compliant, blockchain-enabled finance across Africa.”

Visa’s involvement underscores the platform’s innovation. Cuy Sheffield, Head of Crypto at Visa, commented, “HoneyCoin is tackling real-world challenges in cross-border payments and financial access across Africa. It’s a strong example of how stablecoins can unlock more efficient and inclusive payment solutions in emerging markets.”

Founded by David Nandwa at the height of the COVID-19 pandemic in 2020. Nandwa, then just 19, became one of Africa’s youngest fintech CEOs. He is a serial entrepreneur with successful exits under his belt. Nandwa is also recognised as a leading blockchain engineer on the continent.

HoneyCoin acts as a financial operating system. It merges fiat and blockchain infrastructure. This hybrid approach addresses inefficiencies in global money movement. Businesses in frontier markets benefit the most.

The startup processes over $150 million in monthly transaction volume. It serves more than 350 enterprise customers. Through its consumer app, Peer, it reaches hundreds of thousands of users. Collectively, it powers payments for millions across four continents.

With this new funding, the company plans to grow its team, expand licensure and compliance functions, and continue evolving its API-first product suite for developers, PSPs, and enterprises looking for compliant access to stablecoin settlement rails and FX liquidity. The goal is to solidify its role in the payments industry.

HoneyCoin addressing inefficiencies in global finance

Traditional cross-border payments are slow and costly. Settlements often take 4-7 business days. Fees eat into profits. Compliance hurdles add complexity, especially in Africa.

HoneyCoin changes that. It offers a unified, stablecoin-compatible platform. Features include collections, treasury management, settlements, and FX management. By using stablecoins, it provides instant or same-day settlements.

The platform’s liquidity engine bypasses fragmented rails. This reduces costs. It ensures compliance. HoneyCoin is PCI-DSS Level 1 certified. It operates in over 45 countries.

Businesses can collect and disburse via mobile money, cards, and banks. This covers 15 African markets, plus the US, Canada, Europe, and the UK. FXHub allows trading in up to 49 currencies at competitive rates. Real-time data supports seamless treasury management.

HoneyCoin holds licences in key markets. These include the US, Canada, the EU, and African jurisdictions. Direct integrations with banks and telecoms enhance reliability. Partners include MoneyGram, UBA Bank, and Stripe.

David Nandwa envisions a big future. “Our mission is to build the operating system for money, how it’s moved, held, and collected, regardless of medium or geography,” he said.

Nandwa draws parallels to tech giants like Apple. “Just as Apple redefined computing and Visa transformed global commerce, we believe financial infrastructure is undergoing another once-in-a-generation shift.”

He continued, “This raise enables us to lead that transformation, across Africa and other global markets, by building resilient, interoperable infrastructure for the future of finance.”