Cloud9 Receives Strategic Funding to Fuel Pan-African Growth

Cloud9, a Kenyan fintech startup providing digital banking services for businesses, has secured $500,000 in equity investment from crypto accelerator Alliance. This funding is part of Cloud9’s ongoing pre-seed round that already includes investments from Techstars NYC and strategic angel investors, bringing the company’s total to $1 million.

The investment will be used to expand cross-border payment corridors, enhance product experience, launch virtual/physical cards, and grow its user base across Africa. Cloud9 is positioning itself as financial infrastructure for businesses engaged in international trade.

Building on Mobile Money Success

“Kenya already skipped the bank branch once,” noted Tesh Mbaabu, Cloud9’s founder and CEO. “Mobile money became how the country pays for almost everything, but only within its borders. With Cloud9, a merchant in Nairobi should be able to pay a supplier in Guangzhou as easily as they pay a vendor down the street.”

The platform allows users to hold multiple currencies (including KES, USD, EUR, GBP, and CNY), send payments to over 100 countries, receive international payments via virtual accounts, and withdraw funds locally through mobile money.

Strategic Acquisitions Expand Ecosystem

Cloud9’s expansion includes two recent acquisitions: social commerce platform Chpter (all-stock deal) and ticketing platform M-Tickets for KES 100 million ($773,000). These moves extend Cloud9’s reach across the commercial value chain — from event organizers to consumer transactions and businesses selling through platforms like WhatsApp and Instagram.

Stablecoins Powering Global Trade

The company leverages stablecoins (like USDC and USDT) for efficient cross-border settlements. This approach enables customers to make payments in their preferred currency while Cloud9 handles the conversions on the backend.

“Stablecoins are becoming the settlement layer for global trade, and Africa is where that shift matters most,” said Imran Khan of Alliance. “Tesh has built for African merchants at scale before, and Cloud9 is turning stablecoin rails into an everyday bank account for those who need it most.”

With Kenya importing $4.31 billion worth of goods from China in 2024 alone, Cloud9’s cross-border payment solutions address a significant market need.

The company generates revenue through foreign exchange spreads and transaction fees, with additional income from premium business account features like cards and credit options.