Jambo Raises $7.5M In Seed Funding Round
Three-month-old Congo-based Web3 app developer Jambo recently announced that it had raised $7.5 million in a seed funding round. According to a report, the startup is building a web3 super app for an Africa-based firm working towards democratizing access to crypto-based income-generating opportunities.
JAMBO’S PARTNERSHIP WITH SOCIAL MEDIA COMPANIES
Parties in the seed funding round are Coinbase Ventures, Three Arrows Capital, Alameda Research, Tiger Global, Delphi Ventures, Alliance DAO, Defiance Capital, Yield Guild Games, and Polygon Studios.
Jambo, The startup company, was co-founded in November 2021 by James Zhang (currently the company’s CEO) and his sister. It aims to replicate the success of Web3 projects in Africa. The CEO plans to partner with a telecoms provider and social media companies to achieve their goal.
He further added that we could do that via partnerships with these companies as we tokenize a part of their advertising budget and provide for the end-user. Many web2 incumbents or even web3 have a $100-200 user acquisition cost, so we can lower that by order of magnitude by directly incentivizing the end-user.
A recent report added that Jambo, unlike other startups’ business models, doesn’t strategize on taking a cut from user earnings. As an alternative, the startup’s revenues are expected to derive from advertising and from commissions earned selling airtime and data.
News of Jambo’s capital raising came just over a month after another Web3-focused African startup, Nestcoin, was reported to have raised $6.4 million from investors. However, for the time being, a Techcrunch report states that both startups’ successful funding rounds recommend that Africa is set to follow in Southeast Asia’s footsteps.
To vouch for this assertion, the report quotes the African continent’s rising population, high smartphone diffusion and the growing adoption of crypto as positives that favour the adoption of crypto and play-to-earn models.
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On the other hand, negatives such as the low Gross Domestic Product (GDP) per capita and the continent’s never-ending problem of high unemployment are the few factors that make Africa the best place to launch Web3 projects.