Akua, a Latin American payments startup founded by former executives at Mastercard, dLocal, PayU, Jeeves, and Pomelo, has raised $4.3 million in a seed funding round led by Propel, with participation from Plug and Play, HTwenty, RallyCap, Flourish Ventures, and ICventures.
This new capital will provide Akua with a 28-month runway, allowing the company to continue developing its acquiring infrastructure platform. The platform, which has been under development for the past eight months, is set to launch in the first quarter of 2025.
Initially, Akua’s core infrastructure will connect with Visa and Mastercard, enabling it to process card payments from both issuers. In the near future, the company plans to integrate alternative payment methods as well, aiming to provide a broader range of options for businesses across Latin America.
Competitive Landscape and Expansion Plans
Akua’s operations will begin in Colombia, where it will compete with established players like Credibanco and Redeban. However, the startup has ambitious expansion plans and intends to extend its services to Mexico, Peru, Chile, and Brazil in the coming months.
Carlos Marín, the CEO of Akua and a former executive at PayU, Mastercard, and Pomelo, commented on the challenges and opportunities in the Latin American payments landscape:
“The payment landscape in Latin America is at a crucial turning point. Many businesses are still using three-decade-old legacy systems that cause slow processing times and high fraud rates. Our goal at Akua is to transform this by enabling the most efficient payment rails—whether that be card-based or alternative methods—in the region.”
Focus on Innovation and Efficiency
Marín further elaborated that Akua’s approach would not only focus on improving the efficiency of payment processing in terms of cost but also enhance approval and fraud rates. The company will offer businesses the flexibility to choose the most appropriate payment rail for each transaction, which can drastically reduce costs and improve performance.
Interestingly, Akua’s seed funding round was “oversubscribed” by $18 million within just three months. However, the founding team decided to cap the amount raised at $4.3 million, prioritizing strategic growth over rapid capital accumulation.
“We talked to 80 funds during the process, and 20 of them came on board. What the investors saw was a team with significant experience in the payments industry,” says Marín.
A Seasoned Founding Team
Akua’s founding team is made up of seasoned professionals with extensive experience in the payments sector. The team includes Juan José Behrend, a Uruguayan CTO who previously worked on building technology at dLocal, Pomelo, and PedidosYa; and Rodrigo Rodrigues, a Brazilian COO who led Mastercard’s global card operations for Jeeves.
With a wealth of industry knowledge and the backing of key investors, Akua is positioning itself to revolutionize the payments landscape in Latin America by offering faster, more secure, and cost-effective solutions.
For more details on Akua’s mission and services, visit their official website.