Congo Based Startup Jambo Raises $7.5 Million in Seed Funding Round – Fintech Bitcoin News

Jambo, a Congo-based Web3 developer, has recently announced that it had raised $7.5 Million in seed financing. According to a report, the startup’s successful seed round is the latest by an Africa-based firm that is working towards developing Web3.

Startup’s Partnership With Social Media Companies

Jambo, Congo’s developer of Web3 apps, raised seed financing in the amount of $7.5 million, according to a report. Coinbase Ventures was among the parties that contributed to this funding.

James Zhang (current CEO) and his sister founded the startup in November 2021. They hope to reproduce the success stories of Web3 projects across Africa. Jambo will work with telecoms providers and social media firms to accomplish this goal, said the CEO. He stated:

We can achieve this by forming partnerships with companies that tokenize part of their advertising budgets and then directly providing the user. Web2 and web3 have $100-200 acquisition costs. We can reduce that number by incentivizing end-users.

Still, unlike other startups’ business models, Jambo doesn’t plan on taking a cut from user earnings, the report added. Instead, the startup’s revenues are expected to come from advertising and from commissions earned selling airtime and data.

Conditions Favor Play-to-Earn Models

Reports of Jambo’s capital raise come just over a month after another Web3-focused African startup, Nestcoin, was reported to have raised $6.4 million from investors. Meanwhile, a Techcrunch report states that both startups’ successful funding rounds suggest that Africa is set to follow in Southeast Asia’s footsteps.

To back this assertion, the report cites the African continent’s combination of a fast-growing population, high smartphone penetration, and the growing adoption of crypto as positives that favor the adoption of crypto and play-to-earn models.

On the other hand, negatives such as the low Gross Domestic Product (GDP) per capita and the continent’s perennial problem of high unemployment are listed as factors that make Africa an ideal place to launch Web3 projects.

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Terence Zimwara

Terence Zimwara was a Zimbabwean award-winning journalist and author. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.