Emtech, a New York-based provider of African central banking infrastructure has announced a $4 million seed investment led by Matrix Partners India, with participation from BTN, Vested, Equity Alliance, and LoftyInc Capital including previous investors like Noemis Ventures, Octerra Capital, and 500 Global bringing Emtech’s total investment to $10 million.
The funding comes after the company launched its Central Bank Digital Currency (CBDC) Innovation Kit last month. The kit caters to fintechs and financial service providers interested in experimenting with solutions and business models based on digital currencies pioneered by central banks. With the funding, the company wants to further the development of this CBDC stack and that of its regtech solution.
Last March, founder Carmelle Cadet announced that the company would deploy its first version of a CBDC platform this year. Emtech’s digital regulatory platform previously included the innovator’s center, which assists fintechs in preparing and testing requirements for numerous regulators and pre-market technological integration. The regulatory sandbox enables regulatory bodies to respond to innovations based on live testing results.
According to CEO Carmelle Cadet , the company has a unique position in collaborating with multiple central banks and its focus on supporting a fintech-friendly ecosystem.
Through its CBDC Innovation Kit and a digitized cash infrastructure, Emtech aims to bridge the gap between fintech innovations and central banking oversight, leading to greater financial inclusion in Africa.
Emtech also signed a collaboration deal with the West Africa Monetary Institute this June. In addition to establishing a joint central bank, the institute’s long-term objective is creating a single currency for the area.
The startup is currently working with six Central Banks and has developed regtech and CBDC stack solutions for the Central Banks of Ghana, Nigeria and the Bahamas including collaborating with fintechs in other countries to provide crucial regulatory and innovation insights.