Talk360, an innovative international calling app, has secured $1.4 million in a pre-Series A funding round led by its long-time investor, Havaic. This latest capital injection aims to support the company’s ambitious plans of connecting seven million people by 2025, while also advancing its vision for long-term profitability. Founded in 2016 by Hans Osnabrugge, Jorne Schamp, and Dean Hiine, Talk360 continues to bridge communication gaps for African migrant communities by offering affordable international calling solutions.

Growth and Impact of Talk360

Talk360’s growth trajectory has been impressive over the past few years, expanding from a user base of 2.3 million to four million by 2023. The South African and Dutch-based company enables cost-effective international calls using voice-over-internet protocol (VoIP), allowing only the initiator to require the app and an internet connection to reach any number globally. This unique service has garnered significant traction within underserved communities, particularly among African migrants looking to stay connected with family and friends back home.

“We’re incredibly proud of Talk360’s growth,” said Hans Osnabrugge, co-founder and CEO of Talk360. “This funding will help us continue our mission of connecting African migrant communities with their families back home and will enable us to reach our goal of seven million users by 2025.”

A History of Investor Confidence and Expanding Solutions

Talk360 has attracted robust support from both African and international investors. In 2022, the company raised $7 million in seed funding across two tranches, with contributions from prominent venture capital firms such as Havaic, 4Di Capital, and several fintech angels from Europe and South Africa. Notable investors in this round included executives from leading companies like Mollie, Adyen, WorldPay International, and Booking.com.

Following these successful raises, Talk360 outlined plans to not only grow its user base but also tackle a major challenge in Africa’s fragmented payment landscape. The company began working on an in-house payment platform designed to simplify transactions and reduce failed payment attempts for both merchants and consumers. This platform, which integrates multiple local payment methods and currencies, has already seen a 25% increase in payment conversion rates during its internal trials.

“We are considering opening the platform to external merchants by the end of 2024,” noted Osnabrugge, highlighting the company’s efforts to create a seamless payment experience for businesses across Africa.

Leveraging New Funding for Continued Expansion

The recent pre-Series A round, which raised $1 million from Havaic and an additional $400,000 from other investors, was based on the company’s previous $30 million valuation. This funding will enable Talk360 to localize its services into more African languages and establish partnerships with remittance companies, retailers, and other brands.

“We will soon be supporting languages such as Amharic and Portuguese to better serve our Ethiopian and Portuguese-speaking customers,” said Dean Hiine, co-founder and managing director for Africa at Talk360. “We’ve built trust in underserved communities by offering tailored solutions that address their unique needs, and this new funding will help us expand on that trust.”

A Vision for Africa's Future

Talk360’s expansion efforts go beyond just scaling its user base. The company is positioning itself as a key player in Africa’s broader tech ecosystem by offering solutions that resonate with local communities and addressing persistent challenges in the continent’s payment infrastructure.

“This latest round of funding will empower them to deepen their impact, especially in underserved communities across Africa,” remarked Ian Lessem, managing partner at Havaic. With a clear vision and a resilient business model, Talk360 is poised to make a lasting impact in the African market.

Talk360’s $1.4 million pre-Series A funding round underscores investor confidence in the company’s mission to connect millions of people and revolutionize Africa’s payments landscape. As the company continues to grow, it aims to localize its services further and provide tailored solutions that address the needs of migrant communities and underserved populations across the continent. With strong backing from prominent investors, Talk360 is on track to achieve its ambitious goals while making a meaningful difference in Africa’s tech and communication sectors.