- Xente, co-founded by Francis Nkurunungi, is a fintech platform that streamlines business payments, collections, and financial operations.
- Targeting medium to large enterprises, Xente offers a digital wallet and integrates with systems like VISA to facilitate secure, efficient transactions and manage financial documents in one place.
- Currently, the startup has onboarded over 500 businesses in Uganda and plans to expand rapidly into Kenya, Tanzania, Nigeria, and Ghana.
When you think about the next big thing in fintech, your mind might drift to Silicon Valley or China. But Francis Nkurunungi, the COO and Co-Founder of Uganda-based fintech Xente, wants to change that perspective. He believes that Africa is the next frontier for technological innovation and investment.
At the sidelines of the 13th edition of the AIM Congress 2024 in Abu Dhabi, Francis shared Xente’s entrepreneurial journey, the opportunities and challenges they face, and their ambitious plans for the future. This is the story of a trailblazing fintech startup transforming business payments across Africa and beyond.
The birth of Xente: simplifying business payments
“Xente is a fintech platform where businesses can make payments, collect payments, and manage their finance operations,” Francis explains. Launched with a vision to streamline financial transactions for medium and large enterprises, the firm offers a digital wallet that businesses can load with funds to facilitate their transactions.
This platform isn’t just about making payments; it also allows businesses to store and manage invoices, receipts, and other financial documents in one place, making audits and reviews a breeze.
This holistic approach to financial management is especially valuable for businesses that prioritize accountability and transparency in their operations, Francis highlighted. By targeting medium to large enterprises, Xente addresses the specific needs of businesses that deal with significant financial transactions and require robust management tools.
Leveraging technology for seamless transactions
This platform is accessible via a web app, allowing users to log in from anywhere in the world to conduct transactions. This flexibility is crucial for businesses with diverse operations. Whether it’s paying casual workers on a construction site through mobile money or sending airtime to remote employees, Xente’s integration with bank systems and its capability to handle various types of payments makes it an indispensable tool for businesses.
One of its standout features is its partnership with VISA, enabling businesses to generate virtual cards for online payments. This partnership not only enhances the security and convenience of transactions but also positions its as a versatile platform capable of supporting a wide range of financial activities globally.
Scaling up: expanding horizons
Xente has already onboarded over 500 businesses in Uganda, but Francis has much bigger plans. “We are looking to grow our business 5x in the next 12 months, targeting Uganda initially, but our VISA partnership is helping us scale into Kenya and Tanzania,” he shares. This expansion is just the beginning. In the following year, the startup aims to enter the West African markets of Nigeria and Ghana, leveraging the vast opportunities these regions offer.
Nigeria, with its large and complex market, is a particularly attractive target. “Even a small chunk of that market, if well-targeted, delivers a lot of value,” Francis notes. This strategic approach to market expansion highlights the fintech’s ambition to become a leading player in the African fintech space.
Embracing virtual currency and fintech trends
In a world increasingly leaning towards virtual currencies, Xente sees these technologies as enablers rather than disruptors. “These technologies are support structures for fiat currencies,” says Francis. He believes that while full adoption of virtual currencies might be a way off, fintech innovations like blockchain and mobile money will continue to support and enhance traditional financial transactions.
It’s pragmatic approach to fintech trends ensures that it remains relevant and adaptable, catering to the evolving needs of businesses while maintaining a solid foundation in fiat currency transactions.
The UAE connection: bridging markets
At the AIM Congress 2024, Xente was not just looking to grow within Africa but also to establish a strategic presence in the United Arab Emirates (UAE).
“We are looking for a strategic partner to get our licensing here (UAE) and bridge the trade between Africa and the UAE,” Francis explains. By facilitating seamless, real-time transactions, Xente aims to reduce the reliance on cash and streamline cross-border trade.
“The UAE is strategically positioned for global trade, and linking it with Africa can unlock immense value,” he adds. This vision of bridging two vibrant markets underscores Xente’s goal of becoming a global fintech player, driving value on both sides of the trade equation.
Despite the opportunities, the fintech space is not without its challenges. The competitive landscape is fierce, with many fintechs focusing on B2C services. However, this Uganda-based firm stands out by targeting the B2B segment, which Francis believes is less saturated and offers significant growth potential.
“Most fintechs are attracted by numbers, just like myself, but few are focusing on businesses,” he observes. By carving out a niche in the B2B space, the firm aims to capitalize on this underserved market.
Raising funds and securing government support are ongoing challenges. “Government support has been there but is minimal,” Francis admits. He advocates for tax reliefs and free trade areas to ease the burden on startups, allowing them to focus on growth rather than navigating complex tax regulations.
Read also: How Famunera is revolutionizing agribusiness from Uganda to the UAE
The future of Xente: vision and growth
Looking ahead, Xente has ambitious plans to continue its growth trajectory. The company is raising additional funds, including from key partners like VISA, to fuel its expansion.
“We want to scale our operations and generate about $1 million in revenue annually,” Francis shares. This goal is not just about financial success but also about demonstrating the potential of African fintech on the global stage.
For potential investors, Francis has a clear message: “Africa is the next big frontier. It has been for a while and is the next China. We have a 1.2 billion people market; investments need to come in to tap into this potential.” His confidence in Africa’s future as a hub of innovation and growth is palpable, and Xente is poised to lead this transformation.
Xente’s journey from a Ugandan startup to a burgeoning fintech powerhouse underscores the entrepreneurial spirit and vision of its founders. By leveraging technology, forging strategic partnerships, and navigating the complex landscape of African and global markets, Xente is transforming how businesses manage and conduct their financial operations.
Francis Nkurunungi’s insights at the AIM Congress 2024 offer a glimpse into the future of fintech in Africa and beyond. With its innovative platform, ambitious growth plans, and commitment to bridging markets, Xente is not just keeping pace with the fintech revolution—it’s leading the charge.
As Africa emerges as the next frontier for technological innovation, Xente stands at the forefront, ready to unlock new opportunities and drive transformative change.
