Jambo raises $ 7.5M from Coinbase, Alameda Research to build Africa’s “web3 super app” – Referus


Jambo, a Congolese-based construction site for African web3 user acquisition through “read, play, earn” and democratic access to crypto-based revenue generation opportunities, has raised $ 7.5 million in seed funding.

Experts say Africa is poised to be disrupted by web3 in the same way that it has seen Southeast Asia become one of web3’s leading markets. The latter is home to startups such as Axie Infinity and Yield Guild Games, which have raised millions of dollars in business revenue thanks to the adoption of crypto and play-to-arning models.

The combination of the good things like the fastest growing population — the smallest in the world–, the strong influx of smartphones, the increase in crypto discovery, and the worst such low per capita GDP and unemployment make Africa the next mature web site3.

And few companies, such as Jambo, put themselves in line for the next success. According to James Zhang, its founder and CEO, Jambo wants to add millions of users to web3 in Africa through its applications. She founded the company with her sister Alice Zhang – both Chinese-born in Congo – in December 2021 after seeing an opportunity to repeat the success of web3 projects in Southeast Asia across Africa.

Although users of Axie Infinity and other organizations earn only revenue while playing games under the revenue sharing model, Jambo takes a two-way approach by allowing its users to do so while participating in web2 and web3 activities.

For example, users can save their data when using Jambo. Zhang explains that Jambo has partnered with mobile operators to get a discount of almost 70% and sell its users directly at a 50% discount from real costs. “It is one of our biggest acquisition strategies where we want to double the airtime and data of the African people,” Zhang said.

Second, Jambo has partnered with social media platforms to provide users with tokens (which they can convert to revenue) while viewing their content in its application.

“The reason we do this is in partnership with these companies as we do part of their advertising budget and cater to end users,” he said. “Most web2 or web3 owners have $ 100-200 user acquisition costs so we can reduce that by size plan by encouraging end user.”

Lastly games to win. Currently there are no popular play-to-earn web3 games from Africa and this is because the infrastructure to create it, using Guilds, does not exist. Zhang said Jambo wanted to build that infrastructure. However, unlike well-known organizations whose business models involve taking a percentage of the profits from its users, his company does not plan to determine the revenue received by its users. Instead, Jambo revenue will come from web2 models – charging advertising dollars and commissions for airtime sales and data.

Hello

James Zhang (founder and CEO, Jambo)

“As the African web3 travel site,” the CEO said Jambo is testing more than 10 gaming games to launch its users in the next few months. But in a region with little or no understanding of web3, how does Jambo expect its project to get off to a good start?

“Education is the backbone of what we do because I think there is no shortcut in Africa. You should teach the user base before you think about making money or start finding users at the end of the day. That is why we are introducing classes with a full curriculum on the web3. We plan to present that to more than five African universities by the end of Q1, ”he replied.

Since the beginning of this year, Jambo has registered more than 12,000 students in 15 countries (Morocco, Nigeria, Ethiopia, Equatorial Guinea, Uganda, Kenya, Congo, Uganda, Rwanda, DR Congo, Tanzania, Zambia, Namibia, Madagascar and South Africa. ) taking the selected web3 curriculum, both online and offline. The company said this would allow students to explore the possibilities of the game to earn money and decentralized finance. 10-week programs are available at about 600+ colleges and colleges where hundreds of embassies are enrolling students.

Probably 60% of people under the age of 24 and probably 50% of African university students are unemployedJambo believes its model for educating users about gaming to find and DeFi could “lead to financial prosperity in ways that African people have never been able to reach before.”

Educating young African people about web3 and land redistribution seems to be the subject of the latest web3 upstarts in Africa. Nigeria’s Nestcoin, for example, has raised $ 6.4 million to evaluate its web3 programs, including Breach, a media center that creates crypto-curated and informative crypto content for its users.

Both companies have different types of gaming to make money – Nestcoin has a gaming organization called Metaverse Magna (MVM), which Jambo does not have. However, they are similar in setting up a new section of web3 in Africa that differs from highly established platforms such as remittances and crypto trading.

For Zhang, the key difference is that while traditional forums help Africans save and send money, new beginners increase their income and wealth potential for users.

“I think in Africa, there is no savings because 1% are very rich and 99% are the same. So for us to start with a different approach, which is to help the everyday person make money, ”said the chief executive.

“That’s why every part of our great app is to help the everyday person to make money by playing for it, to make money by watching videos and saving money with data credits. So, in three to six months, once our app goes online, a daily person can make $ 50 a month by playing Axie Infinity, making another $ 20 a month by watching videos, and making another $ 10 a month in cash they get it. save on data credits. That would be an ideal situation for our app to achieve for everyone. ”

Jambo expects to release its beta version by Q2 and be live in Q3. And in an effort to build its best operating system, a team of 60 men spread across sub-Saharan Africa, Santa Clara and Shenzhen raised a party round for investors who have supported prominent web3 companies such as Avalanche, Dharma, BlockFi and Polygon.

They include Coinbase Ventures, Three Arrows Capital (3AC), Alameda Research, Tiger Global, Delphi Ventures, AllianceDAO, DeFiance Capital, Yield Guild Games and Polygon Studios. Also a handful of angel investors from the web3 ecosystem such as the founder of Polygon and CEO Sandeep Nailwal; Former ParaFi partner Santiago R Santos; Founder and CEO of Terraform Labs Do Kwon; and partners at Delphi Digital Piers Kicks.

“What WeChat has done in China, Jambo will do in Africa. I’m excited to support this A + team as the continent’s leading Web3 application, “Santiago R Santos, a web3 investor and former ParaFi partner, said in a statement.