Importance Score: 75 / 100 🔴
Digital banking innovator Djamo, a fintech startup operating in Francophone West Africa, distinguishes itself by targeting underserved markets like the Ivory Coast and Senegal, unlike many competitors focused on larger African economies. Serving over one million customers across these nations, Djamo is making significant strides in expanding financial services access to the underbanked population.
The Y Combinator-backed fintech recently secured $17 million in funding. This capital injection will fuel the expansion of its product offerings for both retail clients and the thousands of small businesses that have joined its platform in the past two years.
Largest Funding Round Highlights Investor Confidence
This equity round marks the largest ever for an Ivorian startup, exceeding Djamo’s $14 million Series A from 2022. The successful funding underscores ongoing investor confidence in the company’s core mission: to deliver accessible and affordable banking solutions.
CEO and Co-founder Hassan Bourgi confirmed the startup’s valuation has doubled since the previous funding round, though he did not disclose specific figures.
Addressing the Financial Access Gap in Francophone Africa
Bourgi, alongside Régis Bamba, Chief Product and Technical Officer, established Djamo in 2020. Their aim was to bridge the financial inclusion divide in French-speaking African countries, where conventional banking penetration remains low. Traditional banks in this region typically cater to wealthier segments, leaving a significant portion of the population reliant on mobile money – a more economical system facilitating financial transactions via mobile phone numbers.
Mobile money has played a crucial role in broadening financial access throughout Africa. World Bank data from 2022 indicates that 28% of adults in Sub-Saharan Africa possess a mobile money account, with the region accounting for over half of such accounts globally. However, this progress has encountered limitations.
Most mobile money platforms offer fundamental services including deposits, withdrawals, peer-to-peer transfers, and bill payments. While beneficial, these platforms often lack advanced financial instruments like credit facilities, investment options, or long-term savings mechanisms.
Djamo’s Strategic Positioning: Bridging Mobile Money and Traditional Banking
Djamo strategically positions itself between mobile money solutions and traditional banking institutions. The startup combines the accessibility of mobile money with the more comprehensive financial services typically associated with bank accounts. This approach mirrors the successful strategies employed by Softbank-backed OPay and Transsion-owned PalmPay, which have scaled to serve tens of millions of customers in Nigeria.
Djamo’s target demographic is a growing segment of users, primarily younger individuals, who have outgrown basic mobile money wallets but still perceive traditional banks as expensive, outdated, or inaccessible, according to the founders.
“These customers are evolving in their financial needs,” Bourgi stated. “However, they are seeking alternatives to traditional institutions characterized by high fees and outdated services. We are endeavoring to become the primary banking solution for this expanding demographic, catering to their increasingly complex financial needs and wealth-building aspirations.”
Expanding Product Suite to Meet Evolving Customer Needs
Since previous reports, Djamo has broadened its offerings beyond cards and peer-to-peer transfers. The Ivorian fintech now provides savings accounts, investment products – enabled by the region’s first fintech-issued brokerage license – and salary-linked bank accounts. Bourgi emphasizes the importance of these additions in enhancing customer engagement.
Djamo, similar to many neobanks, attracts banked customers who utilize it as a supplementary account for streamlined bill payments and mobile money integration. However, the unbanked demographic, while more challenging to onboard, holds greater long-term potential. This segment represents over 55% of Djamo’s customer base and frequently uses the app as their primary financial tool.
Bourgi indicates that approximately 90% of users who consider Djamo their main account belong to this previously unbanked group. To further reach this demographic, Djamo employs a hybrid strategy, blending its app-based platform with a network of in-person agents. These agents assist customers with transactions, mirroring the mobile money model that is now widely adopted by fintechs across the continent.
Currently, only 5–10% of Djamo users receive their salaries directly through the app. “Our next priority,” Bourgi explained, “is to increase this figure from 10% to 50%, ensuring a larger portion of our users receive salary payments directly into their Djamo accounts.”
Growing Services for Small Businesses
Djamo is also expanding its services for small businesses, currently serving approximately 10,000, many of whom originated as retail users. CTO Bamba noted that the startup now offers bulk payment solutions, payment links, and QR code functionalities. These tools empower merchants to accept and manage payments directly within the Djamo application.
The fintech generates revenue through merchant fees on online card transactions and a premium subscription plan, opted for by 25% of its user base. Bamba added that the company is exploring additional revenue streams, including lending services and earning interest on customer deposits. Djamo is currently in the process of acquiring the necessary licenses to provide interest-bearing savings accounts and credit products.
Djamo’s founders report a fivefold increase in revenue since 2022 and have processed over $4.5 billion in transactions since its inception.
Senegal Expansion and Competitive Landscape
With its recent expansion into Senegal, Djamo has entered a market where Wave, a prominent African fintech recognized for affordable mobile money transfers, holds a strong position. However, Djamo is not aiming for direct competition. Instead, it is positioning itself as a complementary service, offering a comprehensive digital banking experience where users can securely store funds and access more advanced tools such as savings, investments, and credit facilities.
Djamo, now a team of 250 professionals, anticipates that this latest funding round, led by pan-African, gender-focused VC Janngo Capital, will facilitate the scaling of its services across Francophone Africa.
Investor Perspectives on Djamo’s Mission
“We are delighted to spearhead the largest VC round in Ivory Coast and reinforce our commitment to Djamo, a purpose-driven fintech revolutionizing access to financial services across Francophone West Africa,” stated Fatoumata Bâ, Founder and Executive Chair of Janngo Capital.
“In a region where formal financial services are accessible to less than 25% of adults, and where women are disproportionately excluded, Djamo’s mission is vital. With women constituting a third of its user base, Djamo is actively addressing the gender gap while unlocking significant economic opportunities.”
SANAD Fund for MSMEs (managed by Finance in Motion), Partech, Oikocredit, Enza Capital, and Y Combinator were among the other investors participating in this funding round.