Nigerian identity solutions company Seamfix, a veteran player in the field for 17 years, has secured its first institutional investment of $4.5 million from Alitheia IDF. This funding fuels Seamfix’s ambitious plan to expand beyond Nigeria and tap into more stable African markets.
Dollarizing Growth: The Driving Force
CEO, Chimezie Emewulu, explains the strategic reasoning behind the expansion. While the company sees year-on-year growth in naira terms, currency fluctuations negatively impact dollar-denominated revenue. Expanding to Ghana, Kenya, and South Africa allows Seamfix to diversify its income stream and earn more in foreign currency.
Beyond Borders: Addressing Africa’s Identity Challenge
The company tackles a critical issue in Africa: the lack of digital identities. With an estimated 542 million people lacking ID cards, solving this problem could boost GDP growth by 7% across the continent. Seamfix offers digital identity creation, verification, and transaction accreditation solutions for large organizations and governments. Existing partnerships with the MTN group and a presence in Uganda, Cote d’Ivoire, and Ethiopia demonstrate their reach.
Proven Track Record and Diverse Revenue Streams
Seamfix boasts an impressive track record. They’ve provided identity solutions for key players like Nigeria’s National Identity Management Commission (NIMC), major Telcos (MTN, Glo, Airtel), and financial institutions like UBA, Interswitch, and Union Bank. Their revenue streams include selling identity solutions, charging for verification services, yearly licenses for database access, and API calls. They’ve processed over 500 million identities to date.
From Custom Solutions to Identity Experts
Founded by classmates Chimezie Emewulu and Chibuzor Onwurah, Seamfix initially focused on customized workflow digitization for organizations. A pivotal client project in 2015, involving student identity verification for online exams, highlighted the critical need for robust identity management solutions across Africa. This led them to pivot towards their current focus.
A Success Story: Reducing MTN’s Fine and Market Breakthrough
Seamfix played a crucial role in helping MTN Nigeria significantly reduce a hefty fine imposed by regulators. By bringing MTN’s customer registration process up to compliance standards, helped them reduce a $5.2 billion fine to $1.7 billion. This success story solidified Seamfix’s position in the market.
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