Fintech Bloom Raises USD 6.5 Million in Seed Funding Round

Sudan-based Bloom, a fintech that offers savings account and adjacent digital banking services, has raised a USD 6.5 million seed round.

This investment is coming after the startup's undisclosed pre-seed round in 2021. This financing welcomed participation from Visa, Y Combinator, US-based VCs Global Founders Capital (GFC) and Goodwater Capital and UAE-based early-stage firm VentureSouq, among other investors.

The investment from Visa came as one of the incentives for Bloom's participation in the global card scheme's Fintech Fast Track Program. A partnership was formed, and as a result, Bloom switched its cards from Mastercard to Visa.

Bloom's founders say this seed round will help the Sudanese- and Dubai-based startup execute its expansion plan across the Anglo-East African region such as Ethiopia, Kenya, Rwanda, Tanzania and Zambia. A few competitors in the region include YC-backed Fingo, Koa, and Finclusion.

Bloom offers fee-free accounts for users to save in USD and buy and spend in Sudanese pounds. It also provides local and USD cards and a feature where they can receive remittance free of charge from several countries globally, mainly where most of the Sudanese diaspora reside. The fintech works with the Export Development Bank, a partner bank that handles deposits. Bloom makes revenue from interest on these deposits, the interchange, and other ancillary streams.

Source: The Paypers