Yellow Card, a leading cryptocurrency platform founded in the U.S. and launched in Nigeria in 2019, has raised $33 million in a Series C funding round.
This latest investment was led by Blockchain Capital, a well-known venture firm with stakes in major players like Coinbase, Kraken, OpenSea, and Worldcoin. With this new round of funding, Yellow Card’s total investment has now reached at least $88 million, further solidifying its position as Africa’s most-funded cryptocurrency exchange.
This funding boost comes at a crucial time for the African crypto and blockchain ecosystem, which has faced numerous challenges in recent years. Many startups have struggled due to harsh regulatory environments, economic instability, and management difficulties, forcing some to either pull back from certain markets or shut down entirely. Despite these challenges, Yellow Card continues to grow and expand its offerings across the continent.
Initially, Yellow Card focused on providing retail customers across 20 African countries with access to cryptocurrency and stablecoins, including USDT, USDC, and PYUSD, using local currencies. However, the company has since shifted its strategy to focus more on serving business customers. This change in direction began during its $40 million Series B funding round two years ago. CEO Chris Maurice has noted that this pivot toward businesses has led to significant growth, though he declined to disclose the company’s current valuation, only indicating that it has increased significantly since the Series B round when the company was valued at $200 million.
Maurice explained that while Yellow Card initially targeted retail customers, the team realized that businesses were the ones who truly benefited from the platform’s services. Managing retail customers proved costly and unsustainable due to low transaction volumes and thin margins. In contrast, businesses, both small and large, were moving more substantial amounts of money and paying higher transaction fees, making them a more viable target market for Yellow Card’s services.
This shift has resulted in Yellow Card raising its minimum transaction amounts, effectively reducing its base of smaller retail users and prioritizing business customers who use the platform for treasury management and stablecoin access. As Maurice explained, “The way our platform is used hasn’t changed much; rather, we’ve adjusted our focus and messaging to better align with how businesses are using our services.”
By catering to businesses, Yellow Card is now positioning itself as a licensed stablecoin on/off ramp, helping companies manage their finances and access stablecoins more efficiently. This shift has also made the company more sustainable and poised for further growth in Africa’s evolving crypto landscape.
As blockchain and crypto industries continue to mature across Africa, Yellow Card’s strategic pivot and successful funding rounds will likely play a pivotal role in shaping the future of crypto adoption on the continent. With $33 million in fresh funding and a growing customer base of businesses, the company is well-positioned to continue its mission of expanding access to cryptocurrency and blockchain technology across Africa.
