SeamFix, a Nigerian company providing digital identity solutions, has secured $4.5 million in funding from Alitheia IDF marking its inaugural institutional investment.
This capital infusion aims to support SeamFix’s expansion beyond Nigeria with South Africa, Kenya, and Ghana earmarked.
We are pleased to announce that we’ve raised $4.5 million in funding from Alitheia IDF to expand digital ID and credential services across Africa.
See more: https://t.co/kk3em8XUbm#Seamfix pic.twitter.com/Uniy4MMcHt
— SEAMFIX (@seamfixltd) May 7, 2024
According to Chimezie Emewulu, the company’s Co-Founder and CEO, the company raised the funding to expand into more stable African markets as the fluctuation of the Naira has impacted the dollar growth of company revenue.
“From a Naira perspective, we see that we are growing year over year but from a dollar perspective, we’re going backwards. That’s why we deliberately decided to start expanding to other countries so that we can earn more in forex,” Emewelu said.
SeamFix will also use the funding to build a pan-African identity switch that will allow for cross-border identity verification on the continent.
SeamFix develops digital identity and verification solutions tailored for major organizations and governmental entities across Africa. The company also offers transaction validation solutions for the same kinds of clients. With current operations in Uganda, Cote d’Ivoire, and Ethiopia, SeamFix extends its reach through collaboration with the MTN Group, enabling the provision of its identity solutions in regions where the telecom giant operates.
Since its founding 17 years ago, SeamFix has developed identity solutions for prominent entities including Nigeria’s National Identity Management Commission (NIMC), as well as telecommunications giants like MTN, Glo, and Airtel.
Moreover, it has provided solutions for leading financial institutions such as United Bank for Africa, Interswitch, and Union Bank. Through its collaboration with NIMC, SeamFix facilitated the acquisition of national identification numbers for over 100 million Nigerians.
The company has also assisted telecommunications companies in registering their 200 million customers ensuring compliance with regulatory requirements.
SeamFix is only the latest company in an increasing list of digital identity services that have been drawing the attention of investors.
Two months ago, YouVerify, another Nigerian company providing identity verification and anti-money laundering (AML) solutions for both banks and startups, raised $2.5 million.
🇳🇬FUNDING | Nigeria’s YouVerify Raises $2.5 Million After Doubling Client Base in Less Than 2 Years
The pre-Series A investment also includes a strategic partnership to help YouVerify streamline AML compliance for businesses, bolster global risk intelligence, and expand its… pic.twitter.com/X8zUauoYbr
— BitKE (@BitcoinKE) March 21, 2024
Other players in the sector include SmileID, Dojah, and IdentityPass, just to name a few that are exploiting the potential in the sector.
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Nigerian startups dominated the cohort of selected startups, followed by Ghana, Kenya, Morocco, South Africa, Egypt, Uganda, Zambia, and Tunisia.https://t.co/j3xNEq88at… pic.twitter.com/Byg4QoQ6Sm
— BitKE (@BitcoinKE) November 16, 2023
“In an increasingly digital-first world where digital platforms enable inclusion and broadening access to essential services, digital IDs are key to access opportunities. According to a recent McKinsey report, such access can unlock up to 70% of an economy’s full economic potential and an additional 6% of GDP,” said Tokunboh Ishmael, Principal Partner, Alitheia IDF.
Governments, including Kenya and Nigeria are also in the process of revitalizing their national identity schemes with digital features coming with various functionalities and integrations.
🇳🇬IDENTITY | Nigeria’s NIMC to Introduce New Identity Card Integrated with Payments and Other Functions
Responding to public concerns that several cards would be introduced, the NIMC has re-assured Nigerians saying:
“The new National ID Card is a single, convenient, and… pic.twitter.com/a7ds7sgAHm
— BitKE (@BitcoinKE) April 16, 2024
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