Online shopping

New Klasha funding fuels expansion of online shopping convenience for African consumers

Klasha, a technology company based in San Francisco and Lagos, is transforming cross-border African commerce that can help merchants around the world reach this fast-growing e-commerce consumer.

The company announced that it had raised an additional $2.1 million to complete its $4.5 million funding round.

The funding round included Amex Ventures – its first Africa-focused startup investment. Klasha’s funding round also included Global Ventures, a leading venture capital firm focused on MEAs.

“We are delighted to have the investment from Amex Ventures and to be backed by Global Ventures – one of the leading venture capital firms in the MEA region.”

Jess Anuna, Founder and CEO of Klasha

“Klasha has the potential to drive spending by simplifying payments in emerging markets and enabling merchants to expand on the continent and overseas,” said Matt Sueoka, Global Head of Amex Ventures.

“Klasha’s end-to-end payment solution is designed specifically for key pain points facing African consumers, including payment methods, currency acceptance and a fragmented logistics landscape,” added Sacha Haider, partner at Global Ventures.

Klasha helps global merchants gain easier access to African consumers

Klasha will use the proceeds to expand into five more African countries in 2022 and relaunch its consumer app – renamed KlashaCart – to enable African consumers to shop online from eligible international merchants.

Klasha’s core payment technology benefits consumers and merchants. This enables African consumers to pay international online merchants in African currencies and monetary methods at checkout, then have their goods shipped to the mainland.

Merchants receive payments in G20 currencies and are empowered to expand in Africa by equipping them with the necessary payment tools, including plugins for popular e-commerce platforms such as BigCommerce, Squarespace, Weebly, Wix, WooCommerce and more.

The latest funding reinforces Klasha’s commitment to improving trade for Africans and simplifying cross-border payments so businesses can grow in a market full of dynamic consumers.

Launched in May 2021 by a team with combined experience at Amazon, PayPal, Mastercard, Shopify and Net-a-Porter, Klasha has grown rapidly. In less than a year, the company has recruited over 1,700 merchants, processed over 210,000 transactions, and is experiencing 15% merchant growth each month.

Klasha’s continued success reflects the substantial market opportunities and willingness of Africans to take advantage of the same seamless cross-border transactions experienced internationally, as their economies rapidly grow.

Africa is a vast opportunity to move quickly in trade. It has over 400 million internet users and the total value of e-commerce is expected to reach $75 billion by 2025.

However, the ability to pay online with African currencies and monetary methods, including cards, M-Pesa, bank transfers and mobile money, is a challenge for African consumers.

Klasha believes they should have the technology to facilitate the same frictionless access to goods regardless of their geographic location.

Klasha payment solutions

KlashaCommander: A payment that can be integrated with any e-commerce platform, website or application that allows international merchants to collect payments from Africa in local currencies, while the merchant receives the equivalent payment in the currency of their choice.

Payment links: An easy way for international businesses to collect payments from customers in Africa without the need for a website, app, or coding skills. With just a few clicks, businesses can create a simple, personalized checkout page right from their Klasha dashboard and share it with their customers.

KlashaCart: An in-app shopping cart that allows consumers to shop at all of their favorite online stores simultaneously. It simply means that with a funded Klasha wallet, African shoppers can visit their favorite brands with one click and one shopping cart. Users can also create virtual dollar cards and pay for subscriptions and services internationally.

KlashaFil: Makes cross-border B2B transactions seamless and secure. With this feature, small business owners can easily make large payments to suppliers abroad in African currencies while reducing transaction cost directly on the Klasha dashboard. When payments are made, the provider usually receives it in their dominant currency within three business days.

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