Emtech Secures $4 Million in seed round led by Matrix Partners India
- ByStartupStory | August 4, 2023
African central banking infrastructure provider, Emtech, recently introduced its Central Bank Digital Currency (CBDC) Innovation Kit, designed to support fintechs and financial service providers in experimenting with solutions based on central bank-driven digital currencies. In a positive turn, the New York-based company has secured a $4 million seed investment led by Matrix Partners India, with participation from BTN.vc, VestedWorld, Equity Alliance, LoftyInc Capital, Level Up Ventures, Collide Capital, and existing investors such as Noemis Ventures, Octerra Capital, and 500 Global. This funding takes Emtech’s total investment to $10 million, including a $4 million pre-seed round last year and a recent $2 million extension.
The introduction of the CBDC Innovation Kit in July aligns with Emtech’s earlier plans, as the startup’s co-founder Carmelle Cadet, had previously stated the company’s intention to launch a CBDC platform this year. Emtech specializes in assisting individuals and organizations in obtaining valuable information and records from government bodies efficiently and affordably.
Despite hoping to collaborate with at least 10 central banks by this point, Emtech currently works with six, having developed reg tech and CBDC stack solutions for the Central Banks of Ghana, Nigeria, and the Bahamas. Emtech has partnered with fintech in various countries to offer regulatory and innovation insights.
Emtech also formed a collaboration with the West Africa Monetary Institute in June, with the aim of creating a joint central bank and a single currency for the region.
The CBDC Innovation Kit, which leverages Emtech’s simulated token “Beyond Cash (BYDC),” provides a sandbox environment for fintech to test transactions and business models, bridging the gap between fintech innovation and central bank oversight.
The CEO of Emtech, Carmelle Cadet, emphasized the potential of CBDCs to significantly impact financial inclusion in Africa. Matrix Partners India’s principal, Aakash Kumar, also expressed enthusiasm for Emtech’s vision and its potential to shape fintech infrastructure for CBDCs and regulatory solutions.
In a broader context, central banks worldwide have been exploring digital currencies to adapt to changing payment landscapes and promote financial inclusion.
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