Fonbnk, the web3 on-ramp that allows Africans to easily obtain cryptocurrency assets by exchanging their airtime credits, has partnered with Tanda, one of the largest independent agent and merchant network platforms in East Africa, to launch a first-of-its-kind airtime trading marketplace across Tanda’s network of 40,000 agents.
Through the partnership, Tanda agents and vendors across East Africa can act as airtime ‘market makers’ and access new revenue streams by buying and selling prepaid airtime for profit on Fonbnk’s distributed exchange.
The alliance marks a significant expansion of Fonbnk’s presence in the African market and highlights the growing interest in DeFi solutions across the region.
“Tanda’s partnership with Fonbnk has the potential to be a game-changer, particularly in terms of driving user growth and monetization. What’s especially exciting about this collaboration is the innovative bridge protocol developed in partnership with Fonbnk, which converts prepaid airtime to digital dollars — a first in the industry. This breakthrough approach enables DeFi for practical, real-world applications and can potentially transform the fintech landscape. I’m thrilled to be a part of this partnership and look forward to the opportunities it presents for both Tanda and Fonbnk,” said Co-Founder and Chief Executive Officer (CEO) of Tanda, Geoffrey Mulei.
This collaboration with Tanda marks a significant financial inclusion breakthrough on the continent as it allows tens of thousands of retailers, agents, and micro-entrepreneurs to supplement their income by participating in the web3 economy, regardless of their banking status.
While nearly 50% of adults in sub-Saharan Africa are financially excluded according to the World Bank’s latest figures, prepaid mobile SIM cards are one of the most ubiquitous technologies on the continent. Fonbnk leverages SIM card pervasiveness and new opportunities created by web3 innovations to rethink financial inclusion on the continent.
“Picture the potential impact of combining mobile money platform M-Pesa with decentralized finance automated market maker, Uniswap. That’s exactly the groundbreaking solution that Fonbnk has developed, and it could have the power to revolutionize financial inclusion throughout Africa,” said Christian Duffus, Co-Founder & CEO of Fonbnk.
On the back of nearly 4000% year-over-year growth of new wallets with a greater than 300% increase in direct revenue, Fonbnk recently completed a seed extension round with participation from Adaverse, an Africa-focused crypto venture fund; Commerce Ventures, a San Francisco-based fintech investor; and Gaingels, a leading diversity-focused angel syndicate.
Fonbnk is now on track to generate over $100 million in GMV as part of its unique Web3 on- and off-ramp partnerships across all the leading Sub-Saharan African economies.