Ivory Coast-based fintech startup HUB2 has raised $8.5 million in Series A funding to pursue its ambitious goal of becoming the "Stripe for Francophone Africa". The funding round was led by pan-African early-stage investor TLcom Capital, with participation from FMO, Enza Capital, BPI France, and Eric Barbier, the founder of Thunes.

HUB2, founded in 2019 by Ashley Gauzere, a former telecom engineer, aims to solve the complex payment issues plaguing Francophone Africa. The region's e-commerce industry is hindered by the fragmentation of mobile money operators and banks, making it difficult for merchants to operate internationally. HUB2's solution is to provide a unified payment infrastructure that enables companies to easily take payments and manage transactions.

The startup has already made significant progress, partnering with 55 neobanks, payment companies, remittance companies, and cryptocurrency providers. Its payment aggregator platform offers comprehensive coverage and seamless integration across payment methods, including mobile money, bank transfers, card payments, and cryptocurrency. HUB2's focus on serving fintechs has driven its growth, with 98% of its volumes coming from this segment.

HUB2's growth has been remarkable, with a projected €1 billion in transaction volume this year, up from €70 million in 2022. The company's revenue has also seen consistent 15% month-over-month growth. Co-CEO Jean-Rémi Kouchakji attributes this success to the company's horizontal play, offering all payment methods to cover the entire footprint for fintechs.

While HUB2 is currently focused on serving fintechs, the company may expand its reach to smaller businesses in the future. This would put it in line with competitors like Paystack and Flutterwave, which have scaled by addressing the needs of enterprise clients and small businesses. Small and medium enterprises (SMEs) account for 90% of businesses in Africa, making them a crucial segment that cannot be overlooked.

To further enhance its payment infrastructure, HUB2 plans to roll out cross-border payment solutions, introduce stablecoin-based remittance services, and expand its card payment capabilities by deepening its integration with CyberSource, Visa's payment processing platform. The company currently operates in six Francophone African countries and aims to achieve full regional coverage within the next two years.

HUB2's 35-person team is spread across three offices in France, Ivory Coast, and Mauritius. The company's partnership with TLcom Capital, which has a track record in Anglophone markets, creates a powerful alliance that will make digital payments more accessible across the continent.

Eloho Omame, partner at TLcom Capital, expressed pride in working with HUB2, citing the company's achievements in the region and the potential for a powerful partnership that will drive digital payments forward across Africa.