A Bold Beginning in Sudan
In early 2022, the fintech startup Bloom, now known as Elevate, made history by becoming the first Sudanese company accepted into the prestigious Y Combinator accelerator program. Founded by industry veterans from Amazon, Meta, IBM, and Goldman Sachs, Elevate initially aimed to protect Sudanese wealth amid economic instability. The startup’s innovative approach provided high-yield savings accounts and digital banking services, helping users hedge against the devaluation of their home currencies.
However, the journey was anything but smooth. Sudan experienced a tumultuous period of political upheaval, including a military coup and civil unrest. This chaos prompted significant changes within Elevate, including a strategic pivot and rebranding, as well as adjustments in their target markets.
Navigating Volatility and Redefining Focus
Despite launching its initial products to 100,000 users and securing $6.5 million in seed funding from prominent investors like YC, Visa, and Global Founders Capital, Elevate faced challenges due to Sudan’s unstable political environment. Amidst this backdrop, key founders Abdigani Diriye and Ahmed Ismail departed for personal reasons, leading the remaining founders to reassess their strategy.
By mid-2022, Elevate identified a burgeoning opportunity in the freelancer and remote work sectors across Africa and other emerging markets. Freelancers often struggled with the high costs of facilitating payments from international employers. Elevate’s solution was to provide U.S.-based USD accounts with ACH payment capabilities, ensuring secure and cost-effective transactions for remote workers.
Expanding Horizons: New Markets and Innovations
The ongoing political instability in Sudan and Ethiopia accelerated Elevate’s pivot. The company expanded its focus to include Egypt, Pakistan, the Philippines, and Bangladesh—markets with a significant number of freelancers facing similar payment challenges. Elevate’s revamped model offered FDIC-insured accounts, low-cost FX transfers, and remittance services, distinguishing itself from competitors like Payoneer.
Since launching in early 2023, Elevate has signed up over 150,000 users across its new markets. Partnering with Bangor Savings Bank and Deel, Elevate simplifies payment processes for non-U.S. residents working with U.S. employers and platforms like Upwork, Toptal, and Fiverr. The fintech also plans to introduce savings and investment products, further enhancing its offerings.
Future Prospects and Strategic Moves
Elevate’s strategic shifts included changing its partner bank and transitioning from Visa to Mastercard. Despite not fully leveraging Visa’s milestone-based investment, the founders remain open to future collaborations with Visa for products like prepaid and local cards. Currently generating revenue from net interest income, FX, and card interchange, Elevate is nearing profitability while maintaining a lean operation.
To fuel its expansion into new markets such as Indonesia, South Africa, and Turkey, Elevate secured a $5 million equity-debt pre-Series A round from Dubai-based Negma Group. The company’s continued success reflects its adaptability and commitment to serving the evolving needs of freelancers and remote workers in emerging markets.
A Vision for the Future
Elevate’s journey from Sudan to becoming a global fintech player underscores its resilience and innovation. The startup’s focus on providing secure and affordable financial services to freelancers highlights a critical need in the global gig economy. As political stability returns to Sudan, Elevate aims to re-establish a physical presence in its home country, contributing to economic recovery and growth.
From my perspective, Elevate’s adaptability and strategic pivots have positioned it well for long-term success. The company’s ability to navigate volatile markets and identify emerging opportunities demonstrates its potential to become a leading fintech provider for freelancers worldwide. As Elevate continues to innovate and expand, it will play a vital role in shaping the future of financial services for remote workers in emerging markets.
