Could Lusaka-based Fintech, Zazu Africa, popularly known as Zazu, play a pivotal role in reshaping Zambia’s digital financing space? In a blog post shared on Wednesday, September 25th, 2019, Zazu announced that it had raised a smashing $1.4million in funding from a venture round. Now what exactly is Zazu?
Zazu, founded by Perseus Mlambo, is a Fintech start-up based in Lusaka but registered in the United Kingdom which operates as a digital money app on Android and iOS, used to store and use money as a digital wallet. Launched in October, 2015, Zazu, originally an Agri-tech start-up which allowed farmers with extra produce to connect with new markets while providing buyers with an easier and quicker way to order more products for less. Zazu went on to focus on digital finance to provide solutions for problems relating to the movement of money and low financial inclusion rates in Africa.
Through venture capital financing, CrunchBase reports that Zazu is funded by Five (5) investors namely; British accelerator firms – Ignite Accelerator & Dotforge, Keyfund, Seedrs and French magnate, Marc Menase with the latter duo being the most recent investors. From its establishment in 2015 to date, Zazu has raised a sum of $2.3million in Five (5) venture rounds in the last three (3) years of its existence, with the most recent funding from a venture round last week as mention in the introduction. Prior to that, Zazu raised circa £460,000 from equity crowdfunding and its investor blesser-Marc Menase in November 2017, £140,000 in a seed round from Seedrs & Key Fund in May 2016 and £30,000 in a seed round from Dotforge in November 2015.
In September 2017, Zazu launched ‘Zazu Pay’, a service which allows NGOs and merchants/retailers across Zambia e.g. Food Lovers to accept digital payments made via the app enabling clients to purchase goods and services using a QR code and pay bills like airtime, electricity & TV subscriptions. For each transaction made, the app classifies the expenses by default to enable clients to better track their expenses considering that the app provides an alternative to stash money away and force individuals to save.
It hasn’t always been a bed of roses for Zazu. Post-implementation of ‘Zazu Pay’, clients were unable to shop at any store of their choice because the initial set up of the app did not allow for any merchant/retailer that wasn’t on-boarded to provide the service. Post identification of this, with plans to launch a digital bank upon receipt of a banking licence from the Bank of Zambia, the Zazu team has decided to embark on a journey to create a ‘Zazu prepaid card’ which will be accessible and useable anywhere in the world provided that the merchant accepts Visa or Mastercard. This enhancement will break down where and how you are spending your money.
At Zazu, its management believes that managing finances is key to every individual’s financial welfare. With over 1.1millon users in Zambia, Zazu has invested heavily in financial literacy education so as to assist the government to achieve its financial inclusion target of 70% by 2022.
Zazu recently announced its collaboration with Conservation Farming Unit in Zambia to educate farmers on skills that will enhance the practice of climate smart agriculture whilst using Zazu to send payments.
Furthermore, Zazu’s collaboration with the Financial Sector Deepening Zambia (FSDZ) has birthed a free course to be delivered to people via USSD, SMS and voice channels which will teach people the very basic skills around money management, from defining what a bank is to credit rates, interest rates or loans.
Despite financial regulation being in its infancy as the dawning of the Fintech world sets a cloud over Zambia, all hope is not lost. With Africa being known for leapfrogging in terms of technology adoption, Zambia may just birth the next Jack Ma.