How Ivory Coast’s Djamo has expanded to become a personal finance super-app
The article discusses the growth and expansion of Ivory Coast-based fintech startup Djamo. Initially starting with a Visa-powered card for digital payments, Djamo has gradually expanded its services to become a comprehensive personal finance partner for consumers. The startup offers additional products such as salary accounts, automated spending categorization, and automated saving products to help customers manage their money effectively.
Djamo's app allows interoperability between banks and mobile money, enabling customers in Ivory Coast to send money between bank accounts and mobile wallets. This feature has helped the company build a full suite of financial services. With 750,000 accounts created in Ivory Coast, Djamo aims to cater to the underbanked and unbanked population in French-speaking markets, where traditional banks provide outdated and expensive services.
The company's goal is not to digitize cash, as mobile money already serves that purpose, but to focus on underserved areas of personal finance. Djamo aspires to be a one-stop personal finance partner for its customers. In 2021, Djamo became the first company from Ivory Coast to be accepted into Y Combinator, a prestigious Silicon Valley incubator. The startup raised $14 million in funding from Y Combinator and other notable funds.
Djamo's growth has been exponential, making it Ivory Coast's leading card issuer, surpassing major banks in less than three years. The company takes pride in its ability to attract users who have never had a payment card before, particularly among the underbanked population. Djamo is expanding to new markets in the West African Economic and Monetary Union (WAEMU) region, with plans to cover major countries in the zone and potentially expand to other French-speaking African countries in the future.
The startup's business model relies on interchange, floating, payout, and subscription fees. As Djamo continues to add features, more users see the value in its product, leading to a high percentage of paid subscribers and double-digit monthly revenue growth over the past year.
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