Victoria, BC, Canada -- Canadian Fintech start-up MazumaGo (formerly DivDot), which digitizes high-value transactions for businesses, announced today the closing of their second pre-seed funding round. Despite the difficult economic situation following the COVID-19 pandemic and an overall decline in Venture Capital investment, MazumaGo oversubscribed the round to a total of $500,000 co-led by Sprout Fund, WUTIF Capital, E-Fund, Hello Ventures and Local Angeles.
Pandemic sparks payments digitization
DivDot enables businesses to move away from cheques and fully digitize payment operations. The company recently saw a significant increase in new customers as businesses experienced an urgent need to replace traditional payment methods with digital means of processing transactions. The COVID-19 pandemic has highlighted the weaknesses of relying on cheque-based systems, resulting in a significant decline in cheque use - a trend that is likely to continue in the pandemic’s aftermath.
“MazumaGo is fulfilling a crucial need in the Canadian B2B payments market that has existed for a long time. Their product solution is highly relevant for small and mid-size businesses today. And it will only continue to gain in importance as organizations become increasingly reliant on operating online in the digital world.” - Mark Benning, Managing Partner at Sprout Fund
The investment will help MazumaGo expand sales and marketing operations, as well as accelerate product development.
“This funding round will facilitate our ambitious growth plans over the next year and beyond. During 2020 we are committed to building out our platform and continuously expanding our product offering,” - Matthew Smith, CEO and Co-Founder
Since launching the beta version of their payment software in September 2019, MazumaGo has demonstrated remarkable growth rates in both value and number of transactions processed. In March 2020, MazumaGo was awarded the “Ten To Watch Award” by the Douglas Magazine and recently moved on to round three of the New Ventures BC competition as one of the top 16 companies.
About MazumaGo (formerly DivDot)
MazumaGo is a payment processing provider that enables businesses to securely send and receive no-limit payments for a flat fee. With MazumaGo, companies can collect payment from customers, pay suppliers, set-up subscriptions and move money between internal accounts from one single dashboard, which is accessible through a web application or API.
Founded by Matthew Smith (CEO), Nick Addison (CTO) and James Davidson (COO), the company launched in September 2019 and is now a registered money services business, processing millions of dollars in transactions for Canadian businesses.
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