Mono Aims to Bridge Africa’s $180 Billion Internet Economy Gap With $2M Boost

Nigerian fintech startup Mono has raised $2 million in a seed funding round to support its mission of powering Africa’s $180 billion internet economy. This brings the company’s total funding to $2.625 million since its launch in August 2020. The investment was led by Entrée Capital and Gbenga Oyebode’s fund (TCVP), with participation from existing investor Lateral Capital and notable angel investors, including Babalola Ogundeyi, CEO of Kuda Bank.

Mono’s platform, known as Mono Connect, is designed to simplify how businesses and developers access financial account data and payment systems in Africa. The company operates in a market where over 50% of the population remains unbanked or underbanked, creating a significant opportunity for open finance solutions. Mono’s approach leverages open APIs to reduce entry barriers for underbanked users by enabling seamless data and monetary transfers between financial institutions.

The funding will be used to strengthen Mono’s existing offerings in financial and identity data and to launch new products tailored for different business verticals. In particular, the startup plans to expand its partnerships with banks such as Gtbank, Fidelity Bank, and MTN Ghana’s mobile money arm. Mono also aims to extend its services to Ghana and Kenya, with plans to go live in Ghana shortly after securing this round of investment.

According to industry research, Africa’s internet economy is projected to contribute 5.2% of the continent’s GDP by 2025. Google and the International Finance Corporation (IFC) estimate that this growth will be driven by a combination of a rising urban population, a growing tech talent pool, and a vibrant startup ecosystem. Mono’s innovative solutions are expected to contribute to this expansion by improving credit assessment and financial services for digital businesses across the continent.

In a broader context, the development of open finance infrastructure aligns with global trends in simplifying blockchain interactions. Chain abstraction, a concept aimed at reducing the complexity of multi-chain ecosystems, is gaining traction as a key enabler of cross-chain interoperability. Solutions such as Polkadot’s relay chain, Cosmos’ IBC protocol, and LayerZero are advancing this vision by allowing applications to operate seamlessly across multiple blockchains.

Chain abstraction works by introducing a layer of middleware that standardizes interactions between diverse blockchain networks. This includes unified APIs for developers, cross-chain messaging protocols, and multi-chain wallets for users. By abstracting away the technical nuances of each blockchain, these solutions facilitate a more streamlined user experience while promoting interoperability and security.

The rise of chain abstraction is particularly relevant in the context of decentralized finance (DeFi) and non-fungible tokens (NFTs). For DeFi platforms, it enhances liquidity by allowing assets to move freely between blockchains. For NFTs, it opens up new avenues for creators to mint and trade tokens across ecosystems. These advancements underscore the importance of multi-chain support in building scalable and user-friendly applications.

Despite its promise, chain abstraction faces challenges, including security risks, scalability concerns, and the need for standardization. The integration of robust security protocols and the development of widely accepted standards will be crucial in overcoming these obstacles and ensuring the long-term viability of multi-chain solutions.

Mono’s recent funding and expansion plans reflect a broader movement toward simplifying financial access and digital infrastructure in Africa. As open finance continues to evolve, companies like Mono are positioning themselves at the forefront of a transformation that aims to bridge the gap between traditional and digital financial systems, ultimately contributing to the continent’s growing internet economy.