Scale, a South African fintech startup, has raised $700,000 in pre-seed funding to support its expansion into Kenya, Zambia, and Côte d’Ivoire. The funding round was led by 54 Collective and First Circle Capital, with additional backing from Sunny Side Venture Partners and a group of angel investors. Scale’s primary goal is to simplify the card-issuing process for fintechs and businesses across Africa, ensuring that critical payment services can be launched faster. According to Scale’s CEO, Miranda Perumal, this investment will help Scale push its vision of improving the payments landscape in Africa and empowering businesses to launch card products more efficiently.
Scale operates as an issuer orchestration platform, providing the infrastructure that enables fintechs to manage the complex process of card issuance. Their platform connects businesses with banks, issuer processors, KYC (Know Your Customer) providers, and payment networks, allowing them to launch payment cards more quickly. In a continent where payment card penetration remains relatively low, Scale’s services are designed to offer seamless and commercially sustainable solutions tailored to meet specific business needs. By reducing the complexities involved in issuing cards, Scale helps businesses save time and money.
Founded by Miranda Perumal and Barbara Woollams in 2022, Scale has quickly established itself as a key player in the African fintech space. Perumal, formerly a director at Visa, brings extensive industry experience, which has helped Scale secure partnerships with banks, investors, and technology providers. The company’s orchestration platform, SOIL (Scale Orchestration Issuing Layer), provides businesses with all the tools they need to launch and manage card products, eliminating many of the hurdles that have traditionally slowed down the process. This positions Scale as a go-to solution for fintechs looking to offer card services. Scale’s CEO, Miranda Perumal, believes the investment is a testament to the company’s value proposition and its commitment to propelling African fintechs to new heights.
One of the key challenges Scale aims to address is the slow and complex process of card issuance in Africa. Selma Ribica of First Circle Capital pointed out that African businesses often face lengthy delays of up to 18 months when trying to launch card products. This is due to the technical expertise and extensive network required to manage partnerships across banks, processors, and regulators. Scale’s Card-as-a-Service model offers a pre-approved, fully managed card scheme, allowing fintechs to launch their products within weeks, significantly reducing the time to revenue.
The recent funding will also help Scale tackle the issue of chargeback fraud, which has plagued the African fintech ecosystem. In 2022, Union54, a Zambian fintech that provided a virtual card-issuing API, shut down its card services after an attempted $1.2 billion chargeback fraud. This left many startups scrambling to find alternative card-issuing solutions. By offering a more secure and streamlined platform, Scale aims to help fintechs avoid similar disruptions, making it easier for businesses to grow and innovate.
With this expansion, Scale is well-positioned to capitalize on the growing demand for card-based payment solutions across Africa. Côte d’Ivoire, in particular, is an attractive market, with over 2.4 million cards issued by banks in 2022. As the African fintech ecosystem continues to grow, Scale’s innovative approach to card issuance is set to play a crucial role in driving financial inclusion and business growth across the continent. With its strong team, strategic partnerships, and cutting-edge technology, Scale is poised to make a lasting impact on Africa’s payments industry.