Victoria, British Columbia-based payment technology company MazumaGo has raised more than C$800,000 in seed-stage financing. Angel investment fund eFund led the round, with participation from Mother Trucker Capital and Hootsuite’s Ryan Holmes.
Victoria, BC, Canada – March 31st, 2021
Fintech start-up MazumaGo kicked off 2021 by closing its seed funding round. The Victoria-based company raised over $800,000 led by Angel Investment Fund eFund. The round also included notable investments from Mother Trucker Capital (Hyperwallet) and Ryan Holmes from Hootsuite.
“We initially invested last year and closely worked with the MazumaGo team over the past 12 months and equally important: became active users of the payment platform which really solved a lot of our problems raising capital and distributing gains quickly and efficiently” – Pieter Dorsman, CFO & Director eFund
MazumaGo disrupts the Canadian B2B payments sector by giving businesses a simple and secure solution to process payments online without transfer limits. These funds will be used to invest in marketing and sales campaigns and hire additional business development and software staff.
“Over the past year, we added some critical features and improvements to our software that allow us to scale customer acquisition in 2021. This investment helps us drive growth while keeping up a steady level of software development.” – Matthew Smith, Co-Founder & CEO
Emerging Rockets: Companies poised for growth
What’s more, MazumaGo was just named an “Emerging Rocket” on the Ready to Rocket list by Rocket Builders. Ready to Rocket is a unique business recognition list that profiles technology companies with the greatest potential for revenue growth. Each year, based on analysis of trends that will drive growth in the information technology sector, Rocket Builders identifies the top private companies that are best positioned to capitalize on the trends for growth.
The Canadian B2B payments opportunity
MazumaGo is solving a huge pain point for Canadian businesses which are still reliant on manual processes and paper cheques to process high-value payments. While consumers have consistently adopted digital payment methods like Interac eTransfer over the past decade, the business environment is lagging behind drastically.
Indeed, paper cheques remain still the most commonly used payment method for commercial transactions. Transaction limits and percentage charges are barriers of current digital alternatives that hold back businesses from moving away from the cheques.
“Cheque volumes and values continued to decline, while average value of cheques increased; (…) the average value of a corporate cheque increased by about five per cent. Cheques remain an important payment option for large value corporate payments.” – Payments Canada, 2020
Bringing business payments into the 21st century
Smith and Co-Founder Nick Addison (CTO) solved this problem by building a payment processing software that enables businesses to send and receive no-limit payments for a flat fee. With MazumaGo, they combined the simplicity of an eTransfer with the robustness and security of the banking system.
The company launched in September 2019 under the brand DivDot and rebranded in November 2020 as MazumaGo. Following the tagline, “Make business payments move,”—the company’s vision is to eliminate any reasons why businesses would want to use cheques and to build a simple, secure network for businesses to exchange funds.
Over the first year, the company has seen significant growth, not least on account of the global pandemic. Under the pressure of staying afloat, businesses that still rely on manual, paper-based processes need to quickly adopt digital ways of accepting and sending money. The lack of a better solution for businesses to process payments has long existed; the changing business environment only brought it to light.
For more information on MazumaGo, visit https://www.mazumago.com/.