Sylvia Duruson
Talk360, an innovative international calling app, has successfully secured $1.4 million in a Pre-Series A funding round. The investment was spearheaded by Havaic, a long-standing supporter of the company. This financial boost aims to propel Talk360 towards its ambitious goal of connecting seven million users by 2025 while solidifying its path to long-term profitability.
The app, which originated as a South African and Dutch collaboration, has experienced remarkable growth. Its user base has expanded from 2.3 million to 4 million in just two years. Talk360’s unique selling point lies in its ability to facilitate affordable international calls, requiring only the call initiator to have the app and internet access to reach any global number.
Talk360’s journey has been marked by strong investor confidence. In 2022, the company raised $7 million through two seed funding rounds. These attracted investments from African venture capitalists and European and South African fintech angels, including executives from prominent financial technology companies and the founders of Tyme Bank.
Following these earlier funding rounds, Talk360 set its sights on expanding its user base among the African diaspora in key markets such as the UK, US, and South Africa. Additionally, the company explored the creation of a pioneering payment aggregator. This platform aims to streamline payment experiences across the fragmented African market, addressing the challenge of failed payment attempts for both merchants and consumers.
The in-house application of this payment platform has yielded impressive results, with an average 25% increase in payment conversion. Talk360 is now considering opening this platform to external merchants before the end of 2024, potentially revolutionizing payment processes in the region.
The recent $1.4 million injection was based on the same valuation of over $30 million that the company received in 2022. It comprised $1 million from Havaic and an additional $400,000 from other investors. This funding arrives at a crucial time, given the current challenges in the global venture capital landscape.
With this new capital, Talk360 plans to expand its language offerings to include more African languages, catering to a broader user base. The company also aims to establish additional local and global partnerships with remittance companies, retailers, and brands to enhance its service offerings.
Talk360’s commitment to localization is evident in its plans to support languages such as Amharic and Portuguese, responding to significant demand from Ethiopian customers. This strategy underscores the company’s dedication to tailoring its solutions to meet specific local needs.
The continued support from Havaic, despite challenging economic conditions, demonstrates strong confidence in Talk360’s future. The investment is expected to empower the company to deepen its impact, particularly in underserved communities across Africa.
Talk360’s success story highlights the growing importance of tailored communication solutions for diaspora communities. By focusing on affordability, accessibility, and local relevance, the company has built trust within underserved markets. As it continues to grow and evolve, Talk360 is poised to play a significant role in connecting African migrant communities with their families back home, bridging communication gaps and fostering stronger global connections.
