Kenyan financial technology company HoneyCoin has completed a $4.9 million seed funding round to accelerate its stablecoin-based payment infrastructure across emerging markets in Africa, Latin America, and Asia.
Flourish Ventures spearheaded the investment, joined by TLcom Capital, Stellar Development Foundation, Lava, Musha Ventures, 4DX Ventures, Antler, and Visa Ventures. The capital injection brings the Nairobi-headquartered startup’s total funding to slightly above $5 million since its 2020 launch.
Targeting Africa’s Cross-Border Payment Market
The company targets Africa’s $329 billion cross-border payments sector, where lengthy settlement periods and elevated transaction costs remain prevalent challenges. HoneyCoin’s blockchain-based infrastructure connects banks, mobile money platforms, and international payment partners, reducing fund transfer times from multiple days to several hours while cutting traditional expenses.
Founder and CEO David Nandwa outlined the company’s ambitious vision: “Our mission is to build the operating system for money; how it’s moved, held, and collected, regardless of medium or geography—just like Apple redefined computing”
Current Operations and Financial Performance
HoneyCoin reports monthly transaction volumes of $150 million while serving 350 corporate customers and 326,000 individual users. The company generates primary revenue through business-to-business settlement services and merchant acquisition, with enterprise clients paying up to $2,500 monthly for API integration access.
According to Nandwa, the startup has maintained profitability for two consecutive years. “We have unlimited runway, we’re profitable and have been for the past 2 years” he stated, emphasizing the company’s financial stability.
Geographic Presence and Regulatory Compliance
The fintech currently operates across 15 African nations, the United States, select European markets, and various emerging economies. HoneyCoin maintains multiple regulatory licenses including Money Service Business status in Canada, Payment Service Solutions Provider authorization in Canada, virtual asset service provider certification in Europe, and MSB approval in the United States.
Within Africa, the company has secured Letters of No Objection from regulatory authorities in Nigeria, Kenya, and Tanzania, alongside direct partnerships with mobile network operators and payment service providers.
Technical Infrastructure and Growth Metrics
The startup’s proprietary technology includes what Nandwa described as “a stablecoin-powered AI Matching Engine that uses the customer and volume data we have to net off flows across both sides” This system works alongside a global network of partner banks to enable same-day settlement capabilities.
HoneyCoin reports 16% month-over-month growth in business transaction volumes, while consumer activity through its Peer application grows 5% monthly. Domestic business-to-business transactions represent approximately 60% of total volume.
Expansion Plans and Product Development
The fresh capital will fund expansion into Mozambique, Zambia, Rwanda, French-speaking African markets, Latin America, and Asia. HoneyCoin also plans to hire senior management, obtain additional licenses, and develop new service offerings.
Scheduled for third-quarter 2025 launches are several products including a Visa-partnered stablecoin debit card, an Interswitch collaboration for corporate liquidity solutions, banking-as-a-service offerings in Ghana, Malawi, and Tanzania, and point-of-sale software for East African markets.
Investor Perspective and Market Competition
Efayomi Carr, principal at Flourish Ventures, highlighted HoneyCoin’s potential: “[HoneyCoin] has the chance to cement itself as the go-to infrastructure layer for collecting, converting, and settling funds in any currency across B2B cross-border payments”
Nandwa identified competitors including VertoFX, Nala, Yellow Card, and Cellulant, all developing cross-border payment solutions for African markets. The funding will strengthen core infrastructure, deepen regulatory relationships, and attract senior talent to serve larger enterprise accounts.