Djamo, a fintech startup focused on improving banking accessibility across Francophone West Africa, has successfully raised $17 million in a recent equity round. This funding marks a significant milestone for the company and for the Ivorian startup ecosystem, being the largest financing round for a startup in Côte d’Ivoire to date.

Mission and Market Positioning

Founded in 2020 by Hassan Bourgi and Régis Bamba, Djamo was created to address the financial inclusion gap in French-speaking nations, particularly in Ivory Coast and Senegal. With over a million customers registered, the startup aims to provide an alternative to traditional banking, which often caters to wealthier clients, leaving many underserved.

Many adults in these regions lack access to formal banking services; as of 2022, the World Bank reported that only 28% of adults in Sub-Saharan Africa held mobile money accounts, predominantly offering basic services. Djamo seeks to bridge the gap by offering enhanced financial tools, combining the convenience of mobile money with the expansive features of traditional banking.

Expanding Services and Engagement Strategies

Since its previous funding round in 2022, Djamo has diversified its product offerings beyond basic banking services. It now includes savings vaults, investment products—enabled by the region’s first fintech-issued brokerage license—and salary-linked bank accounts. This strategic expansion aims to enhance customer engagement among its user base, which is heavily comprised of younger adults seeking more sophisticated financial tools.

To cater to unbanked individuals, who constitute a significant portion of its clientele, Djamo has implemented a hybrid operational model. This involves the use of offline agents to assist users directly, reminiscent of familiar mobile money systems. Currently, about 10% of Djamo users have their salaries deposited through the platform, with aspirations to increase this figure to 50%.

Supporting Small Businesses

In addition to individual banking solutions, Djamo is enhancing its offerings for small businesses. Approximately 10,000 merchants utilize the platform, benefiting from tools such as bulk payments and QR code transactions. This move aims to streamline the payment processes and enhance operational efficiencies for entrepreneurs.

Djamo generates revenue through merchant fees and has introduced a premium subscription model, which 25% of its users currently subscribe to. The company is also in the process of acquiring licenses to introduce interest-earning savings accounts and lending products, which could further bolster its revenue streams.

Funding Round and Future Growth

The recent funding, led by Janngo Capital, underscores continued investor confidence in Djamo’s mission. Fatoumata Bâ, founder of Janngo Capital, expressed enthusiasm about the venture’s potential to enhance access to financial services, particularly for women, who account for one-third of its user base.

Djamo’s aggressive growth strategy is reflective of its ambitious goals; the company reported a fivefold revenue increase since 2022 and has processed over $4.5 billion in transactions since its launch. As Djamo continues to navigate the competitive landscape, particularly in Senegal where it enters a market dominated by established players like Wave, it aims to position itself as a complementary service while focusing on broader financial service accessibility.