by David Frankel, co-founder of Founder Collective, has joined Ezeebit’s $2.05 million (R34.9 million) seed fundraising round. Ezeebit is a South African stablecoin and cryptocurrency payment infrastructure startup.
Frankel co-founded Internet Solutions, one of South Africa’s first internet service providers, before transitioning to become an influential American venture capitalist. His participation adds an invaluable layer of expertise and insight, signaling strong belief in Ezeebit’s vision and technology.
A Backing from Heavyweight Investors
Leading the funding round is Raba Partnership, known for its early bets on African fintech giants like Flutterwave, Stitch, Fuse, and BVNK. Their involvement underscores a vote of confidence in Ezeebit’s ability to disrupt payment systems and drive blockchain adoption in Africa. Also joining the round is Founder Collective, a prominent early-stage venture fund with a stellar track record investing in global success stories such as Uber, WHOOP, Airtable, and The Trade Desk.
Ezeebit stated that the funds will be utilized to expedite product development and merchant adoption in South Africa, Kenya, and Nigeria. Additionally, it will use the money to strengthen strategic alliances with banks, payment processors, and telecom firms.
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Strong Traction Since Launch
Since opening its doors in 2023, Ezeebit has shown impressive growth. The startup has processed over 30,000 transactions, totalling millions of dollars in gross merchandise value. This demonstrates early adoption and trust in its platform by both merchants and consumers seeking stable, secure cryptocurrency payment options.
In 2025, after operating quietly in stealth mode, Ezeebit officially revealed its business activities and client base. Its platform powers payments for a range of prominent brands across Africa, including iStore, Scoin, Diesel, Amiri, Le Creuset, Al Capone Premium, and Ritual. This diverse client portfolio showcases the startup’s ability to cater to various industries, from retail and fashion to lifestyle and premium goods.
Africa’s Growing Crypto Potential
Ezeebit’s leadership points to several structural tailwinds propelling its growth trajectory. One critical factor is the persistent inflation in multiple African countries, which undermines local currencies and increases demand for stablecoins. Stablecoins—cryptocurrencies pegged to stable assets like the US dollar—offer a hedge against volatile inflation, providing merchants and consumers with a reliable alternative for transactions and savings.
“African merchants are tied to slow, expensive payment rails, while consumers increasingly hold crypto for remittances and savings but lack a safe way to spend it,” said Daniel Katz, co-founder and CEO of Ezeebit.
“We bridge this gap by connecting decentralised and traditional finance with a compliant stablecoin settlement layer.”
Africa’s cryptocurrency market is booming on a global scale. According to the 2025 Geography of Cryptocurrency Report, Sub-Saharan Africa received over $205 billion (R3.5 trillion) in cryptocurrency on-chain value between July 2024 and June 2025. This represents a 52% year-over-year increase, making Sub-Saharan Africa the world’s third-fastest-growing region for crypto adoption, trailing only Asia-Pacific (APAC) and Latin America.
Unique Challenges for African Merchants
According to Ezeebit, conventional digital payment acceptance is growing rapidly, but African merchants still face several obstacles. These include multi-day settlement (three to five days), high fees (two to three percent or more for card transactions), frequent declines, and few cross-border choices.
Compared to typical card payments, Ezeebit claims that merchants on their platform save 68% by paying costs of 1% or less. Additionally, it eliminates the danger of volatility by providing next-business-day local currency payouts and fast stablecoin settlement.
This explosive growth signals a profound shift in how Africans participate in the digital economy. While traditional digital payment methods continue to expand, cryptocurrencies—especially stablecoins—are carving out critical new roles in commerce, investment, and financial inclusion.
Strategic Vision and Next Steps
With freshly secured seed capital, Ezeebit is poised to scale aggressively. The investment will fuel product development, expand merchant onboarding, and boost marketing efforts to seize a larger share of Africa’s growing crypto payments market.
The company plans to deepen integrations with strategic partners while expanding its stablecoin offering beyond South Africa into other high-potential African markets grappling with inflation and financial instability. This regional expansion aligns with the rapid growth in crypto activity highlighted in recent reports and capitalizes on rising interest from both merchants and consumers.
Potential for Market Transformation
If Ezeebit succeeds in scaling its infrastructure and merchant base, it could catalyze a broader transformation in how African commerce operates. Faster, cheaper, and more reliable cryptocurrency payments can lower barriers to trade, attract new customers, and stimulate economic activity.
Stablecoins can also play a key role in cross-border transactions that currently incur costly fees and delays. By facilitating smoother currency exchange and instant settlements, Ezeebit’s platform may become indispensable for regional trade and e-commerce growth.
