Juicyway, a Nigerian cross-border payments startup, has successfully raised $3 million in pre-seed funding to bolster its operations. The company plans to use this capital to expand its marketing and business development teams, enhance its technology, and scale its services across Nigeria, the US, the UK, and Canada.
Funding Round Details
P1 Ventures led the funding round, with participation from Ventures Platform, Future Africa, Magic Fund, Microtraction, and notable angel investors, including Andrew Alli, Gbenga Oyebode, and Tunde Folawiyo.
Overview of Juicyway
Founded in 2021 by Ife Johnson and Justin Ziegler, Juicyway operates as a marketplace that enables businesses and individuals to convert local currency to dollars and vice versa. The platform caters to both suppliers—entities bringing foreign currency (like USD or CAD)—and buyers, businesses needing to purchase foreign currencies for outbound transfers. Juicyway generates revenue through transaction fees and spreads from its platform transactions.
Unique Selling Point
Ife Johnson, co-founder and CEO, explained that Juicyway serves two primary types of businesses:
- Demand Side: Businesses looking to convert local currency to US dollars for international payments.
- Supply Side: Businesses use Juicyway’s accounts to bring money into the continent and convert it into local currency for disbursements.
Given the ongoing challenges Nigerian businesses face in accessing foreign exchange, Juicyway aims to provide a near-instant, cost-effective, and compliant solution for cross-border payments. The startup allows transactions using stablecoins, such as Tether and USDC, blending decentralized finance (DeFi) with traditional finance (TradFi).
Operations and Technology
Juicyway operates a unique matching system where Customer A deposits naira to obtain dollars, while Customer B provides dollars, enabling them to exchange liquidity without Juicyway acting as a counterparty. This model allows businesses to set their own prices and order limits, fostering a market-influenced pricing system conducive to favorable FX deals.
Since processing its first payment of $9 in November 2021, Juicyway claims to have handled $1.3 billion in total payment volume (TPV) for over 4,000 customers.
Licensing and Market Presence
The company is licensed as follows:
- Nigeria: International Money Transfer Operator (IMTO) license
- Canada: Money Services Business (MSB) license
- UK: Authorised Payment Institution (API) license
Juicyway is also partnered with banks in the US and has received Phase 1 payment approval in Washington, DC. Recently, the company expanded its services to individuals, aiming to increase its customer base through enhanced marketing efforts.
Future Plans
Looking ahead, Juicyway plans to raise additional funding in the next 18–24 months to support its growth strategy. Hisham Halbouny, co-founder and managing partner at P1 Ventures, expressed excitement about partnering with Juicyway’s founders, emphasizing their vision to tackle critical challenges in finance and empower emerging markets.
In summary, Juicyway is positioned to significantly impact the cross-border payments landscape in Nigeria and beyond, leveraging its innovative technology and market approach to facilitate smoother international transactions.
