Dubai-based fintech startup Mansa has raised $10 million in seed funding to expand its stablecoin-based cross-border payment solutions in Latin America and Southeast Asia. The funding round, which includes both equity and debt, was led by stablecoin provider Tether, with additional investments from Faculty Group, Octerra Capital, Polymorphic Capital, and Trive Digital.

Mansa's innovative solution addresses the liquidity challenges faced by payment companies in emerging markets, allowing them to settle transactions and fund customer accounts instantly. The startup's co-founders, CEO Mouloukou Sanoh and COO Nkiru Uwaje, bring extensive expertise in finance, payments, and web3, having previously worked at web3 VC firm Adaverse and SWIFT, respectively.

The need for efficient cross-border payment solutions is pressing, with remittance costs averaging 6.5% globally and disproportionately affecting developing regions. The current system's inefficiencies could cost businesses billions, with cross-border payments expected to reach $290.2 trillion annually by 2030. Mansa's solution offers fast, flexible embedded pre-funding solutions, completing due diligence in under a month, and underwriting loans based on real-time transaction data rather than collateral.

The startup aggregates capital from decentralized finance (DeFi) platforms, quant funds, family offices, and hedge funds, securing $7 million in liquidity from these institutions for its seed round. Mansa's partnership with Tether is crucial, as the stablecoin provider's broad accessibility, usage flexibility, and market dominance make it an ideal partner for emerging markets.

Despite USDC's rapid growth, Mansa remains bullish on Tether, citing its market share of 70% in terms of trading volume among stablecoins globally. The fintech startup is committed to regulatory adherence, having hired the former head of HSBC North Asia and the chief legal officer of Franklin Templeton to strengthen its regulatory oversight.

Mansa has already disbursed over $18 million in payments financed to its clients, with access to over $200 million in liquidity through its partner network. The fintech claims to have no defaults so far, with its transaction volume surging since launching six months ago, from $1.6 million in August to $11 million in January, compounding at a monthly growth rate of 37.5%. The company expects to reach a $1 billion total payment volume (TPV) run rate this year, up from its current $240 million run rate.

The two-year-old fintech serves a broad range of clients, including B2B payment platforms, virtual card providers, stablecoin infrastructure, forex platforms, and remittance companies operating in Africa, Latin America, and Southeast Asia. These clients have reported a 30% increase in transaction volumes and a 10% revenue boost since onboarding, with Mansa's own revenues growing 350% in the past six months.

While lending is Mansa's starting point, the fintech startup has ambitious plans to expand its services, aiming to create a one-stop payment platform where clients can finance their payments, settle transactions instantly, and access foreign currency seamlessly – all in one place. This evolution could see Mansa become an on-chain version of Stripe, revolutionizing the cross-border payment landscape.

Tether CEO Paolo Ardoino expressed support for Mansa's efforts, stating that the stablecoin provider is "proud to collaborate with Mansa and support their efforts to reshape global payment infrastructure."