Cameroonian fintech Koree has closed a pre-seed round of $200,000 which it plans to use to grow its merchant base.
Koree, a Cameroonian fintech that allows customers to save spare cash (change) on their cards, has raised a $200,000 pre-seed round. The fund will be used to grow its network of merchants, scale its user base, and ultimately achieve product-market fit, according to Magalie Gauze-Sanga, founder of Koree.
The round was backed by Tunde Akinnuwa, co-founder at Duplo, Cameroon Angels Network, Catalytic Africa, Digital Africa, and other private investors.
Koree aims to solve the problem of spare change in cash-based economies by using a card and digital wallet that allows merchants to return their customers’ spare change. With Koree’s product, these merchants can also create loyalty programmes where customers can earn cashback rewards.
To achieve its objective of raising the pre-seed fund, Koree is set to launch a new marketplace that will enable users to get rewards on their everyday purchases. “Consumers will now earn cash when they shop on the Koree app, across 14 categories ranging from bakery, supermarket, fast food, movies, pharmacy etc,” Gauze-Sanga told TechCabal.
“They shop as usual and earn a certain percentage of the amount they have spent. The money Koree users earn in their wallet is hard cash, which they can redeem directly into their mobile money account.”
Koree will work with customers’ referenced payment service providers for them to be able to redeem their cashback.
Since its launch in September 2022, Koree has registered more than 13,000 users and processed over 50,000 cash-based transactions worth $400,000. In that time, the fintech has also generated 30,000 private wallets. Its revenue source stems from charging merchants a subscription fee in addition to a commission on each transaction for its customers.
In June 2023, Koree won the Orange Fab Cameroon challenge. With the fintech’s aim to expand across the continent, especially within francophone Africa, the Orange Fab acceleration programme will provide resources targeted at expansion. Orange’s network of industry experts will provide mentorship for Koree’s strategic development plans. Four months later, in October, Koree won the Ecobank Fintech Challenge, taking home $50,000 in non-dilutive funding. This funding is already being used to hire in business development and engineering roles.
With Koree’s team spread across Cameroon, Côte d’Ivoire, Togo, Nigeria, and Senegal, Gauze-Sanga believes that having a physical office—which will be in Douala, Cameroon—would help the team bond and create a strong work culture.
