Termii, a pan-African communication platform-as-a-service (CPaaS) startup, has secured $3.65 million in funding to drive innovation in digital communication across Africa.
Backed by Y Combinator, the startup aims to reimagine the way African businesses interact with their users and has garnered significant investor support.
This latest funding round, led by Ventures Platform, an Africa-focused venture capital firm, highlights the growing confidence in the underfunded CPaaS sector.
According to a report by Techcabal, Termii’s Chief Executive Officer (CEO), Gbolade Emmanuel, emphasized the unique value of their product, stating, “Our product is not a nice-to-have; it’s a painkiller.”
The company’s vision and its critical role in the daily operations of African fintech companies attracted investors, including Fintech Collective, Launch Africa Ventures, and Nama Ventures, among others.
Prominent angel investors, such as Aubrey Hruby of Tofino Capital and Eamon Jubbawy of Onfido, also joined Termii’s roster of backers.
Originally founded in 2017 as a messaging product facilitating communication between businesses and users across multiple platforms, Termii has evolved into a comprehensive solution.
Its infrastructure powers secure messaging for approximately 9,000 fintech companies, including popular platforms like Moniepoint, Chipper Cash, and Piggyvest.
The startup boasts a client base of over 10,000 businesses spanning various sectors, such as logistics and health tech.
One of Termii’s standout propositions that caught investors’ attention is Termii Go, the company’s latest product—a game-changing unified communications app.
Set for a public launch this month, Termii Go combines a customer relationship management (CRM) tool with a mobile communications infrastructure, enabling swift real-time interactions between businesses and users.
Moreover, the app enhances security by safeguarding sensitive information even in the event of a lost or stolen device.
Termii Go also provides innovative features such as partnerships with phone manufacturers like Tecno and Infinix, which enable bypassing third-party messaging gateways and ensuring immediate message delivery.
Additionally, the app plugs into existing mobile virtual operators, offering users globally responsive electronic SIM cards to make calls and access the internet.
This aspect primarily caters to business-to-business (B2B) communication needs, expanding the scope and affordability of team interactions.
Gbolade expressed his excitement about Termii’s unique position in the market, stating, “There’s no product like ours in the African market. We are bringing world-class innovation to the communications sector which has historically been controlled by a few mega players. Our goal at Termii is to redefine communications and optimize it for Africans, and we’ve only begun to scratch the surface.”
The global CPaaS market is projected to reach $34.75 billion by 2026, with Africa’s market still taking shape.
Although Termii faces competition from players such as Africa’s Talking, Beem, and SendChamp, Mr Gbolade dismisses them as “fractional competitors” since they offer only parts of Termii’s comprehensive solution.
The firm has been a game changer throughout the industry, ensuring the secure delivery of one-time passwords (OTPs) and transaction-related messages. This high level of certainty is made possible through Termii’s proprietary internal technology called ICS, which intelligently detects downtimes and redirects traffic to alternative routes.
After raising capital in 2021, Termii expanded to Algeria but faced challenges due to a restrictive regulatory environment. Consequently, the company refocused its expansion efforts on francophone Africa, particularly Ivory Coast.
With its recent funding, Termii aims to deepen its roots in these expansion zones.