Local Fintech Zazu has launched a Fintech Banking union named ‘Union 54’. The app is slated to provide Fintechs who are established and regulated as Electronic Money Issuers (Zazu in Zambia) will be eligible to apply to be a ‘Founding Member’ of the Union. Each Fintech considered a ‘Founding Member’ will be entitled to shares of the organisation known as Union 54.
The Union is marketed towards Fintechs located in Africa’s 54 countries. According to the ‘Whitepaper’ the African Fintech environment is currently oversaturated with foreign investors looking to push out the local founders for market share. By standardising the common practices within their systems (ie unique QR payment codes), it will allow these companies to formalise their operations and integrate the capabilities of other founding members.
Zazu was the online bank operational in Southern Africa, founded by Perseus Malambo, a Forbes 30 under 30 alumni. The application was initially built to improve the financial literacy of farmers in partnership with FSD Zambia. The company then pivoted to attempt to create a neo-bank similar to that of Monzo and Revolut. The app currently has over 1,000 downloads on the google play store.
In 2017 Zazu became the first Zambian Fintech to raise capital through the popular crowdfunding app Seedrs. In its initial funding round the app raised $215,000 under the pre-revenue valuation of $2.5 million. The company then entered the industry through partnerships with Eco Bank Zambia and Mastercard. Late last year the company raised $1 million from an undisclosed investor, the largest Zambian fintech capital raise until Lupiya raised last month. Earlier this year Zazu announced their ‘virtual card’, which allows users to create debit cards for single-use online purchases, which was built in partnership with Tutuka.