Talk360, the international calling app, has raised $1.4 million or R25 million in a Pre-Series A funding round, led by long-term investor Havaic.
The funds will support the company’s goal of connecting seven million people by 2025 and advancing toward profitability.
“We’re incredibly proud of Talk360’s growth. Over the past two years, we’ve gone from connecting 2.3 million users to 4 million in 2023. This funding will help us continue our mission of connecting African migrant communities with their families back home,” says Hans Osnabrugge, co-founder and CEO of Talk360.
Talk360, a South African and Dutch calling app, allows affordable international calls, requiring only the initiator to have the app and internet to reach any number globally. In 2022, Talk360 raised $7 million in seed funding from African venture capitalists and fintech angels, including executives from Adyen, Mollie, and the founders of Tyme Bank.
Post-raises, Talk360 expanded its user base in the UK, US, and South Africa and explored creating a payment aggregator to streamline payment experiences across Africa’s fragmented market, addressing failed payments for both merchants and consumers.
“This payment platform has been exclusively used in-house to establish a strong foundation. The results have been exceptional, with an average 25% increase in payment conversion. We are strongly considering opening the platform to external merchants before Christmas 2024,” says Osnabrugge.
The latest funding, based on a $30 million+ valuation, includes $1 million from Havaic and $400,000 from other investors. “The additional funding will enable us to deliver on our next phase of growth to reach seven million people and achieve profitability across our global operations,” adds Osnabrugge.
Talk360 aims to localize into more African languages and establish partnerships with remittance companies, retailers, and brands.
“A better understanding of our audiences will also see the upcoming releases supporting languages such as Amharic and Portuguese. This talks to the significant demand of our Ethiopian customers and highlights our willingness to localise our solution where needed,” says Dean Hiine, co-founder and MD Africa at Talk360.
“Talk360 has built trust within underserved communities by offering a solution that resonates with their unique needs. This new funding will help the business capitalise on that trust to create even more tailored solutions that deliver value at a local level.”
Havaic’s continued support of Talk360, despite the challenging economic conditions, underscores their strong confidence in the company’s future. “Talk360’s ability to navigate and succeed in challenging economic conditions speaks to the strength of its business model and clear vision. We are confident this latest round of funding will empower them to deepen their impact, especially in underserved communities across Africa,” says Ian Lessem, Managing Partner at Havaic.
