The Kenyan-based startup began as an exchange that allowed customers to make small mobile payments to friends and family. However, BitPesa is now targeting business customers who want to remit payments straight to bank accounts or send multiple payments to employees via mobile money.
There could be significant demand for cross-border remittance services to businesses in Nigeria, Uganda, Tanzania and Kenya, as normal international bank transfers are expensive and can take longer time to complete than a bitcoin transfer.
In February 2015, BitPesa closed a $1.1 million Series A investment round including Blockchain Capital, Digital Currency Group, Future Perfect Ventures, Pantera Capital, Stephens Investment Management. Before that, the company had raised approximately $600,000 in seed funding.