South Africa’s Talk360 Secures $1.4 Million in Pre-Series A Funding to Expand African Reach

06 Oct 2024

Talk360, a South African and Dutch international calling app, has raised $1.4 million in a Pre-Series A funding round led by long-standing investor Havaic. The capital injection will fuel Talk360’s ambition to connect seven million users by 2025 while advancing its path toward long-term profitability.

The app, which enables users to make affordable calls to any landline or mobile number globally, has seen significant growth. "Over the past two years, we’ve grown our user base from 2.3 million to 4 million in 2023," said Hans Osnabrugge, co-founder and CEO of Talk360. "This funding will help us continue our mission of connecting African migrant communities with their families back home."

Talk360 previously raised $7 million in 2022 from African venture capitalists and fintech angels in Europe and South Africa, including executives from fintech giants like Adyen and Mollie. These investments have fueled Talk360’s expansion, particularly targeting the African diaspora in the UK, US, and South Africa. The company is also developing a payment aggregator to address the fragmented payment landscape in Africa, reducing transaction failures for merchants and consumers. Early results from its in-house use have shown a 25% increase in payment conversion rates, and the platform is expected to be opened to external merchants by late 2024.

This latest round of funding was secured at the same $30 million+ valuation Talk360 received in 2022. Of the $1.4 million raised, Havaic contributed $1 million, with the remaining $400,000 coming from other investors. Despite global venture capital headwinds, Havaic’s continued backing underscores confidence in Talk360’s business model and future prospects. "Talk360’s ability to thrive in challenging economic conditions highlights the strength of its vision and execution," said Ian Lessem, Managing Partner at Havaic.

The additional capital will support Talk360’s efforts to localize its service, with plans to introduce more African languages such as Amharic and Portuguese to better serve the Ethiopian and Lusophone markets. The company is also looking to establish partnerships with remittance firms and retailers, further deepening its reach into underserved communities.

"By localizing our solution to meet the unique needs of our audience, we’ve built a product that resonates with underserved communities," said Dean Hiine, co-founder and MD Africa at Talk360. "This funding will help us deepen that connection and provide even more tailored solutions that add value at a local level."

As Talk360 works to connect millions more users across Africa, its ability to navigate the complex economic and technological landscape positions the company as a rising player in the continent’s evolving fintech space.

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