Start-Ups

Fintech Cadana Secures $7.1 Million Seed Funding To Boost Remittance For African Talents

This situation exacerbates problems for remote workers in Africa, who may face up to a week-long wait for their earnings and lose 5-7% in remittance fees.

Fintech Cadana Secures $7.1 Million Seed Funding To Boost Remittance For African Talents
Canada founders [PHOTO CREDIT: Techpoint Africa]

Cadana, the fintech startup co-founded in 2021 by Ghanaian Albert Owusu-Asare (CEO) and Pakistani Ameer Shujjah (CTO), has successfully raised $7.1 million in seed funding. The company is revolutionizing payroll for talent marketplaces, staffing companies, and HR providers, enabling efficient payment processes for workers across 32 emerging markets, including Nigeria and Ghana. Cadana’s mission is to simplify access to global job opportunities for talents in Africa and other emerging regions.

Evolution from EWA to Comprehensive Payroll Solutions

Owusu-Asare and Shujjah, both US immigrants who met during their college years as computer science and physics majors, initially founded Cadana as an earned wage access (EWA) platform targeting specific African markets. Shortly after launching, they identified a broader opportunity to address various payroll challenges. Consequently, salary-on-demand service evolved from the primary offering into part of a comprehensive global payroll software solution for businesses in emerging markets.

The $1.3 trillion global freelancer market, which comprises over 200 million knowledge workers, demands efficient payroll solutions that navigate the complexities of employment and tax regulations worldwide. However, legal hurdles in African and other emerging markets, such as differing employment laws, often render existing products inadequate. Global hiring platforms, which typically rely on third-party providers for payroll services, are left grappling with these local legal intricacies.

Cadana’s Market Impact and Future Prospects

This situation exacerbates problems for remote workers in Africa, who may face up to a week-long wait for their earnings and lose 5-7% in remittance fees. Cadana aims to resolve these issues with its APIs and white-label products, which integrate payments and payroll management into existing systems. Cadana customers in emerging markets are reportedly satisfied with the platform’s offerings. Owusu-Asare told TechCrunch, “We focused on creating a robust local infrastructure to address these issues. Over the past three years, we’ve integrated local payments, compliance, and benefits systems to serve our customers better and meet their needs.”

In addition to streamlined payroll services, Cadana provides real-time payments with fees under $3 and offers workers options to invest in USD-denominated assets like stocks. Cadana faces competition from UAE-based RemotePass, which also targets emerging markets. However, CEO Owusu-Asare contends that Cadana’s competitive edge lies in its expertise in expediting remittance processes for talents in Africa, Asia, and Latin America.

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