Eversend launched its Seedrs campaign targeting a raise of EUR550,000 (US$613,000) in return for 7.67 per cent equity but ended up raising substantially more. In the end, the startup raised EUR897,000 (US$1.015 million), valuing the business at EUR6.6 million (US$7.4m).
Founded in 2017, Eversend also provides multi-currency wallets and currency exchange that allows one to exchange, spend and send money at the best possible rates.
It plans to offer personal loans, savings, group savings, merchant payments and investments in the future. Available on Android and iOS, the startup has over 40,000 registered users and is growing at around 30 per cent month-on-month.
“For Africans and Africans in the diaspora that experience inconvenient and expensive financial services, Eversend is a one-stop financial services hub to exchange, save, manage and send money at the best possible rates, both online and offline,” the startup said in a statement.
The Neobank startup for Africans led by Ugandan entrepreneur Stone Atwine, has acquired a money lending license in Uganda, and taken part in programmes such as the Google Launchpad Africa accelerator, CATAPULT: Inclusion Africa, the Westerwelle Young Founders Programme, and the Ecobank Fintech Challenge.
In November 2019, competing against 1,700 companies, it was named winner of the Helsinki-based Slush startup competition.
The crowdfunding forms part of a wider funding round being raised by Eversend, which is in the process of being completed. The startup will use the funds for product development, user acquisition, and regulatory compliance, while it also intends to expand its offering to Nigeria, Francophone Africa, and Europe.
Some of the funds will remain in company accounts as working capital to beef up Eversend’s netting off reserves.
Funds from the Seedrs round will be used for product development, accelerate user acquisition efforts, beef up working capital, expand its market to Nigeria, Francophone Africa, and Europe and use some of the funds for regulatory compliance.
Eversend recently announced the launch of its virtual Visa cards. The virtual cards are notably denominated in US Dollars and can be used to pay for online purchases like Netflix, Amazon, Facebook, Google and Twitter ads among other purchases. The virtual cards created on Eversend can be used for up to three years before they expire.