Cleva Company Profile

Background

Cleva is a Nigerian fintech startup founded in August 2023 by Tolu Alabi and Philip Abel. The company aims to empower African individuals and businesses by providing USD accounts, facilitating seamless international payments, and mitigating local currency volatility. Cleva's mission is to enhance financial inclusion and streamline cross-border transactions for Africans. The company operates within the financial technology sector, focusing on banking and payment solutions tailored for the African market.

Key Strategic Focus

Cleva's strategic focus centers on offering USD accounts to African freelancers and businesses, enabling them to receive international payments efficiently. The platform allows users to open USD accounts, receive payments from global clients, spend via cards, pay bills, convert to local currency, and save in USD to hedge against currency fluctuations. Cleva targets the growing market of African remote workers and freelancers, addressing the estimated $18 billion opportunity in facilitating payments for this segment.

Financials and Funding

In January 2024, Cleva secured $1.5 million in pre-seed funding. The funding round was led by 1984 Ventures, with participation from The Raba Partnership, Byld Ventures, FirstCheck Africa, and several angel investors. Additionally, Cleva joined Y Combinator's Winter 2024 batch, receiving further support from the accelerator. The capital is intended to enhance Cleva's platform capabilities, expand its user base, and develop new products such as USD cards and savings options in U.S. assets.

Pipeline Development

Since its launch, Cleva has facilitated the opening of U.S.-based accounts for thousands of Nigerians, processing over $1 million in monthly payments and achieving a 100% month-on-month revenue growth. The company plans to introduce USD cards and savings products in U.S. assets to diversify its offerings. Cleva also aims to expand its services to Africans in the diaspora and enter the remittance market, providing features like professional invoicing and global USD transfers.

Technological Platform and Innovation

Cleva differentiates itself through a user-friendly platform that allows quick opening of USD accounts, competitive exchange rates, and low fees. The platform is designed to provide a seamless customer experience, with a capped 0.9% fee on deposits into USD accounts, distinguishing it from competitors with uncapped fees. Cleva's technological infrastructure is built by a team with extensive experience in developing banking products and robust platforms, ensuring reliability and scalability.

Leadership Team

Tolu Alabi, Co-Founder and Chief Executive Officer: Alabi brings experience from major tech companies, including Stripe, where she contributed to building banking products.

Philip Abel, Co-Founder and Chief Technology Officer: Abel has a background in developing robust platforms at AWS, providing technical expertise to Cleva's operations.

Both founders were born and raised in Nigeria and have firsthand understanding of the challenges faced by Africans in receiving international payments.

Competitor Profile

Market Insights and Dynamics

The African fintech market is experiencing rapid growth, driven by increasing digital adoption and the need for efficient cross-border payment solutions. The market for facilitating payments for remote workers and freelancers in Africa is estimated at $18 billion, presenting significant opportunities for fintech companies.

Competitor Analysis

Cleva operates in a competitive landscape alongside platforms such as Geegpay, Payday, Flutterwave's Send, Chipper Cash, Lemfi, and Afriex. These competitors offer similar services, including cross-border payments and USD accounts for African users. Cleva differentiates itself through its focus on customer experience, transparent fee structure, and plans to introduce additional products like USD cards and savings in U.S. assets.

Strategic Collaborations and Partnerships

Cleva's participation in Y Combinator's Winter 2024 batch provides access to a vast network of mentors, investors, and resources, strengthening its market position and innovation capacity. The support from investors like 1984 Ventures, The Raba Partnership, Byld Ventures, and FirstCheck Africa further enhances Cleva's capabilities and growth potential.

Operational Insights

Cleva's strategic considerations include focusing on exceptional customer experience, competitive pricing, and rapid product development to stay ahead of competitors. The company's deep understanding of the African market, combined with the founders' technical expertise, positions Cleva to effectively address the challenges of international payments for African users.

Strategic Opportunities and Future Directions

Cleva plans to expand its services beyond Nigeria, targeting Africans in the diaspora and entering the remittance market. The company aims to evolve from a product-only service to a platform issuing APIs, enabling broader service distribution across other African countries and globally. By leveraging its current strengths and focusing on innovation, Cleva is well-positioned to capitalize on the growing demand for efficient cross-border payment solutions in Africa and beyond.