South African startup Scale has raised $700,000 in pre-seed funding to help fintech companies issue customizable cards across Africa. Founded by Barbara Woollams and Miranda Perumal, Scale focuses on brand management and building strategic partnerships for fintechs looking to enter new markets or expand product verticals. This recent funding round, led by 54 Collective and First Circle Capital, will enable Scale to grow its operations into Kenya, Zambia, and Cote d’Ivoire, with a particular focus on their flagship product, Scale Execute, developed in partnership with Visa and Mastercard.

The startup’s card-issuing service comes at a time when African fintechs are reconsidering card services due to rising costs from multi-layered partnerships and chargeback fraud, which has plagued some fintechs, including Eversend and Busha. Despite these challenges, expanding to Cote d’Ivoire makes sense for Scale, given the country’s strong card issuance growth, with 2.4 million cards issued by local banks in 2022.

With Africa’s fintech market projected to hit $230 billion by 2025, Scale aims to tap into this expanding sector, providing vital card issuance infrastructure that could account for 35% of payment cards by 2029. Competing against players like Onafriq, Scale is positioning itself as a critical enabler in Africa’s fintech landscape.

Key Highlights:

• $700,000 Pre-seed Funding: Led by 54 Collective and First Circle Capital.
• Expansion: Operations will expand to Kenya, Zambia, and Cote d’Ivoire.
• Key Product: Scale Execute – customizable card issuance, in partnership with Visa and Mastercard.
• Card Issuance Market: Cote d’Ivoire leads in West Africa with 2.4 million cards issued in 2022.
• Fintech Market Growth: Expected to reach $230 billion by 2025 in Africa.

Scale’s innovative approach and deep industry expertise are setting the stage for a revolution in how African fintechs offer card services to customers, despite the challenges of fraud and high processing costs. 💳✨

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