Nigerian communications-as-a-service (CPaaS) startup, Termii, has secured $3.65 million in new Series A funding, bringing its total funding to date to over $5 million.
The round was led by Fintech Collective and Ventures Platform and also saw participation from Launch Africa Ventures, Nama Ventures, Aidi Ventures, Ralicap Ventures, Now Venture Partners, Vastly Valuable Ventures, NOA Capital, Assembly Investors, Probability Ventures, Adamantium Fund, MyAsia VC, Uncovered Fund, Afropreneur Angel Group, and angel investors Aubrey Hruby and Eamon Jubbawy.
Termii’s CEO, Gbolade Emmanuel, announced that the funding will be primarily used for the expansion of the company as well as the development and promotion of new and existing products in new markets, clarifying that the funds are not for operational activities.
Termii, founded in 2019 by Gbolade Emmanuel and Ayomide Awe, aims to address the communication needs of African businesses. The company plans to expand into Francophone African countries, with the Ivory Coast as its initial target instead of the previously planned North African expansion. Gbolade Emmanuel stated that there is growing interest in Termii’s product from big tech and financial service providers, as well as small enterprises.
“We plan to support more countries in the future, like countries in the U.K. We plan to launch all these services in phases and have seen growing interest in this product from big tech and financial service providers and small enterprise businesses,” Gbolade added.
The startup offers an API-based communication infrastructure that allows businesses, particularly fintechs, to engage customers through various channels, including SMS, voice messaging, mobile tokens, alerts, and a two-way support system.
With the funding, Termii aims to expand its offerings beyond regular messaging services by developing call services and one-time password (OTP) generation. These additions are expected to increase transaction numbers and enhance customer engagement capabilities.
To facilitate its expansion, Termii has launched the TermiiGo mobile app, which is positioned as Africa’s first cross-company mobile virtual solution. The app provides features such as direct-to-mobile notifications, SMS messaging, time-based OTPs, and local and international calling for enterprise businesses. TermiiGo also leverages the mobile virtual network operator (MVNO) model to offer global eSIM activation across Africa.
Termii’s decision to secure funding for expansion and product development reflects its commitment to meet the demands of its customer base. The company recognizes the need for one-time verification systems across multiple communication channels and aims to provide enhanced customer experiences and increase its market presence.
In 2021, Termii raised $1.4 million in seed funding and already serves over 500 fintechs, which account for 89% of its customer base. The startup’s APIs are used by over 1,000 businesses and developers.
Termii has experienced significant growth since its launch, with more than 10,000 businesses relying on its API and campaign dashboard for monthly SMS and voice message termination. The company has seen a 30x increase in annual recurring revenue and a surge in message transactions on its platform.
With the recent funding, Termii is well-positioned to expand its operations and become a leading CPaaS provider in Africa. The company is targeting a market that is expected to grow to $10 billion by 2025.
