Pan-African cryptocurrency exchange Yellow Card has announced the close of its $40M Series B funding led by Polychain Capital. Other investors participating in the round include Valar Ventures, Third Prime, Sozo Ventures, Castle Island Ventures, Fabric Ventures, DG Daiwa Ventures, and The Raba Partnership.

The company intends to use the funds to promote business expansion, create new products, strengthen strategic alliances across Africa, and expand its business across the continent.

Since closing its $15 million Series A round in August 2021, the cryptocurrency exchange has achieved a couple of milestones, including growing its presence from 12 to 16 countries on the continent and granting stock options to every full-time employee. Additionally, the company launched Yellow Pay, a crypto-powered way to send value across borders, and in March 2022, it surpassed 1 million customers. 

While commenting on the Series B round, Chris Maurice, CEO, and co-founder of Yellow Card, stated, “For the past three years, our team has worked tirelessly to make this technology accessible to anyone and create a world-class product. This fundraise, in the current market environment, not only showcases the resilience of our team but also clearly demonstrates the appetite and necessity for cryptocurrency in Africa.”

Representing the lead investor Polychain Capital, partner Will Wolf mentioned that the size of the round, especially in a funding downturn, points to the level of business confidence expressed by new and existing investors in the company.

“Yellow Card is the best executing team on the continent. We are impressed by the way they seamlessly adjust and adapt to the unique opportunities and demands of the various African markets. We’ve barely touched the surface of what is possible when it comes to crypto in Africa, and we’re excited for what’s to come,” he added.

Africa’s cryptocurrency market surged over 1,200% in value between 2020 and 2021, making it the third-fastest growing industry worldwide, according to blockchain data company Chainalysis.

Startups in the continent’s crypto industry continue to attract significant funding rounds. According to the African Blockchain Report, startups in the sector raised US$91 million in Q1 2022, a figure representing a 1,668% year-on-year increase from Q1 2021.