Nigerian cross-border payments startup Juicyway has raised $3 million in pre-seed funding to accelerate its growth and expansion plans. The company, founded in 2021 by Ife Johnson and Justin Ziegler, operates a marketplace that enables businesses and individuals to convert local currency to dollars and vice versa, making it easier to conduct international transactions.

The funding round was led by P1 Ventures, with participation from Ventures Platform, Future Africa, Magic Fund, Microtraction, and angel investors Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo. The investment will be used to expand Juicyway's marketing and business development teams, improve its technology, and scale its business in Nigeria, the US, the UK, and Canada.

Juicyway's platform serves both suppliers – businesses that bring foreign currency – and buyers – businesses that need to buy foreign currencies to make outbound transfers. The company generates revenue from transaction fees and spreads from transactions on its platform. According to Johnson, Juicyway's co-founder and CEO, businesses come to the platform for two main reasons: to convert local currency to US dollars and make international payments, or to leverage the accounts provided to bring money into the continent and convert it into local currency to make disbursements.

The startup's raise comes at a time when access to foreign exchange (FX) remains a significant challenge for Nigerian businesses dealing with frequent heavy international transactions. Juicyway is one of the many Nigerian upstarts pitching to solve the country's cross-border payments problem. The company's hybrid decentralized finance (DeFi) and traditional finance (TradFi) payments approach, which allows businesses to make cross-border payments using stablecoins like Tether and USDC, sets it apart from other players in the market.

When a business onboards on Juicyway, they can choose to open a US Dollar (USD), Canadian Dollar (CAD), or stablecoin wallet. The platform matches businesses that need FX with those that have excess currency, allowing them to exchange liquidity without knowing it. This approach enables Juicyway to avoid being a counterparty for transactions, reducing risks and costs for its customers.

Businesses can set the prices and order limits they want to sell their foreign currencies, and other businesses that need FX can buy the foreign currencies if they match the asking price. This market-influenced pricing system enables businesses to get good FX deals. Johnson explained that Juicyway saw a problem where every single time businesses needed to convert local currency to foreign currency, there just wasn't a supply for that currency that was near-instant, cheap enough, or compliant enough to solve their needs.

Juicyway has been operating in stealth mode since November 2021, when it first processed its first $9 payment. Since then, the company claims to have processed $1.3 billion in total payment volume (TPV), a metric that Juicyway considers as its North Star. The startup operates in four markets: Nigeria, the UK, the US, and Canada, and holds licenses in all these markets.

The company recently expanded its services to individuals, with Johnson saying they needed "critical mass" to test and expand their platform. Individuals needing to make international payments or receive forex supply can also onboard on Juicyway. The startup plans to grow its customer base in the coming months by increasing its marketing efforts.

Johnson expressed his excitement about the potential of Juicyway's platform, stating that it can handle one or two million people across the UK, Canada, and Nigeria – all existing in one platform – and make money move between one another either directly or indirectly. The company operates in a niche market that benefits both remittance companies and market makers, with examples including remittance companies like RemitChoice using the platform to sell liquidity and make disbursements, and businesses like IHS Towers using it for outbound payments.

Hisham Halbouny, co-founder and managing partner at P1 Ventures, expressed his excitement about partnering with Juicyway's founders, saying that they seek audacious and exceptional founders who aim to redefine industries and empower emerging markets. The company will be looking to raise again in the next 18–24 months.