Djamo, a digital banking startup focused on Francophone West Africa, has raised $17 million in funding to expand its product suite and reach more customers in the region. The Y Combinator-backed fintech startup has carved out a niche in the Ivory Coast and Senegal, serving over one million customers across both countries.

The equity round, the largest ever for an Ivorian startup, surpasses Djamo's $14 million Series A in 2022 and reflects continued investor confidence in its mission to make banking accessible and affordable. Co-founder and CEO Hassan Bourgi declined to share the new valuation but said it has doubled since the last raise.

Djamo's founders, Bourgi and Régis Bamba, set out to close the financial access gap in French-speaking African countries, where few adults have bank accounts. Traditional banks in the region often cater to the affluent, leaving most of the population reliant on mobile money, a cheaper method that includes using phone numbers to make financial transactions. Mobile money has been instrumental in expanding financial access across Africa, but it has its limitations, offering basic services like cash-in, cash-out, P2P transfers, and bill payments.

Djamo is positioning itself between mobile money and traditional banking, offering the accessibility of mobile money with the financial depth of a bank account. The startup targets a growing segment of users, mostly younger customers, who've outgrown mobile money wallets but still find traditional banks expensive, outdated, or inaccessible. Djamo's founders say these users are evolving and want more complex, wealth-building financing opportunities.

Since its last funding round, Djamo has expanded its product suite beyond cards and peer-to-peer transfers. The Ivorian fintech now offers savings vaults, investment products, and salary-linked bank accounts, which Bourgi sees as important to boosting customer engagement. The startup has adopted a hybrid approach, combining its app with offline agents who meet customers in person to facilitate transactions, similar to the mobile money model.

Djamo is also ramping up services for small businesses, providing bulk payments, payment links, and QR code tools to help merchants accept and manage payments directly within the app. The fintech generates revenue from merchant fees on online card purchases and a premium tier plan, which 25% of users pay for. Djamo is exploring additional revenue streams, including lending and earning interest on customer deposits.

The company has grown revenue 5x since 2022 and processed more than $4.5 billion in transactions since launch. With its recent expansion into Senegal, Djamo has entered a market dominated by Wave, one of Africa's largest fintechs known for low-cost mobile money transfers. However, Djamo positions itself as a complementary service, offering a digital banking experience where users can store funds and access more advanced tools like savings, investments, and credit.

The funding round was led by pan-African, gender-focused VC Janngo Capital, with participation from SANAD Fund for MSMEs, Partech, Oikocredit, Enza Capital, and Y Combinator. Fatoumata Bâ, founder and executive chair of Janngo Capital, said, "We are thrilled to lead the largest VC round in Ivory Coast and double down on Djamo, a mission-driven fintech transforming access to financial services across Francophone West Africa."

With this new round of funding, Djamo plans to scale its services across French-speaking Africa, targeting the underbanked population and promoting financial inclusion. The startup's mission is vital in a region where fewer than 25% of adults have access to formal financial services, and women are twice as likely to be excluded. Djamo's focus on closing the gender gap and unlocking economic opportunity at scale makes it an important player in the African fintech landscape.