We are very pleased to announce FinTech Collective’s investment in Termii, a Lagos based Communications Platform as-a-service (CPaaS) business. The company works with more than 10,000 businesses, nearly 90% of which are in the fintech or financial services space, to ensure timely delivery of OTPs (one time passwords) as well as transaction-related authorizations and notifications.
Termii’s API-based communication infrastructure is tapping into an enormous opportunity – filling the gap as the connective tissue between companies and their users. The company is instrumental in powering day-to-day user interactions via channels including SMS, voice, and WhatsApp. Use cases are expansive, including verifying identity, activating virtual accounts and virtual cards, sending account balance notifications, verifying payment transactions, and triggering fraud alert messages.
We first met Emmanuel, Ayomide, and Atinuke in Lagos in September 2022. Their experiences at the intersection of tech, telecommunications, and marketing led them to identify a gap in customer engagement capabilities and begin building the “Twilio of Africa.”
We are excited to back the team’s mission to build Africa’s digital communications infrastructure, beginning with Nigeria. Termii has raised $3.65m in new funding, led by Ventures Platform, with participation from FinTech Collective, Launch Africa Ventures, Nama Ventures, Aidi Ventures, and Ralicap Ventures, among other notable angels and investors. Termii has already reached profitability and grown their revenue by 30x in the past two years, allowing them to leverage new funding for expansion opportunities.
As the global CPaaS market is projected to reach $35b by 2026 with a CAGR of 35%+, Twilio has dominated in North America with nearly 40% of market share. Meanwhile, however, a white space has persisted on the continent. Over the past decade mobile penetration has nearly doubled to reach ~90%, and Termii has emerged as the frontrunner in allowing businesses to capitalize on this connectivity to more seamlessly verify, engage and support their user bases.
Termii is even more integral to businesses than in many other markets. For example, companies in the US may never need to think twice about message delivery rates, but on the continent the costs and time spent on cross-channel communication are immense, with some messaging arriving days late – if at all.
Termii’s communication APIs are able to drastically increase delivery certainty by detecting restricted contacts and network outages before sending messages. By proactively identifying mobile network status and navigating preemptive switching between telcos to optimize for success, companies can save up to 50%.
At FinTech Collective we see Termii as a key player in transforming these dynamics, allowing both African and multinational companies to attain new levels of reliability and profitability.
“There’s no product like ours in the African market. We are bringing world-class innovation to the communications sector which has historically been controlled by a few mega players. Our goal at Termii is to redefine communications and optimise it for Africans, and we’ve only begun to scratch the surface.”
Gbolade Emmanuel - Termii CEO