Tech and Covid have changed the way we work, making remote, multinational, workforces commonplace. But while businesses big and small benefit from being able to recruit the best talent, that talent often has to deal with the complexities of cross-border payments.
Idorenyin Obong found himself in exactly that position. After struggling to convert a US dollar payment, he was inspired to change things for remote workers and global freelancers. Now the co-founder and CEO of fintech Grey, he joined us for TechTalks with TFN to discuss how he started Grey, what sets it apart from other payments providers, and to share some of the lessons he learned on the way.
Watch the full episode on YouTube here, and don’t forget to like and subscribe to TFN!
From freelancing frustration to fintech founder
After gaining a computer science degree in Nigeria, Obong worked in a succession of fintechs, including cryptocurrency exchanges Busha Digital and Yellow Card Financial and the payments provider, PayStack, which was acquired by Stripe.
However, it was while he was working as a freelancer that, somewhat ironically given his fintech background, he experienced difficulties with payments. “I was receiving my salary in US dollars. I had to make an urgent payment,” he recalled. “Trying to convert from dollars to my local currency was such a tedious process that it took me almost an entire day.”
It was the inspiration behind Aboki Africa, which was to become Grey. “I realised this process could be better … that’s when I decided I was going to build Grey to solve this problem,” he said.
Approaching a university friend as a co-founder, they launched with their minimum viable product in 2020. Aboki Africa’s name came from the roadside currency exchanges in Nigeria, and focused on the African market. However, Obong soon found his ambitions stretched beyond the continent. “We wanted something that wouldn’t limit us,” he said, “even though we had to go beyond what we started the company as.” It meant that, in 2021, the company was rebranded as Grey, reflecting their plans to expand their product range and enter new markets.
Facing the challenges of Africa’s nascent startup scene
The African startup community is growing, but the ecosystem remains some way behind those of the US and Europe. That presented one of their first challenges: getting funding.
“For the first twelve to eighteen months, we couldn’t get any VC funding,” Obong told us. “We had to use our personal savings.” However, their faith in the project paid off. A small pre-seed funding round was followed by, at the third attempt, a successful application to startup accelerator Y Combinator.
Joining Y Combinator in 2022 marked a turning point for their startup. “It was a very good experience for us. We got to meet partners, got to meet other startup founders who built both successful and failed businesses. You get to learn from both sides,” Obong explained. “They’re basically using those three months to advise and nurture you on avoiding a lot of mistakes which startup founders make today.” It also transformed their fundraising, helping them win $2.4 million investment afterwards.
Grey now has a team of around 50 and is looking to continue its growth. “We’re trying to increase our market penetration in existing markets, that’s the number one priority for us,” Obong said. “We’re also looking to launch new products. We’re looking to launch our payment links products. We’re looking to launch our rewards products, where we give customers reward points for using Grey. We’re also looking to launch physical cards.”
Creating tailored solutions for its market
Understanding and explaining the pain point they are addressing is a key for anyone seeking funding, he said, “One mistake that founders make is to pitch their business like the investor understands the pain point, but most times they don’t.”
It means that Grey can focus on freelancers and remote workers by offering products tailored to them. “We are picking a specific niche and building for that niche,” says Obong. “Things like invoicing, products that help them manage their finances, help them build their wealth, especially in emerging markets.”
Understanding their customers has been a key to Grey’s success. Obong points out that by serving a specific niche, it gives them an edge in a market crowded with fintechs like Wise that do not offer that specialism.
Combined with Obong’s own experience and knowledge, it means Grey has a clear advantage over competitors that cannot understand the cultural contexts of Grey’s target markets. “We’re not just helping customers to receive payment and send payments,” he said. “We want to help customers to build wealth and really grow their money.”
Belief in the products Grey offers
Obong’s bad experience dealing with payments has led him to found a company to help those that follow avoid that pain. His advice to anyone who has similar experience is to be obsessive about that pain point. However, he goes on to say that self-belief is a crucial part of that obsession.
“You need to have a lot of courage. You need to believe in yourself,” he told us. “Sometimes, when you think of an idea, and you tell it to someone else, it looks foolish.” However, it is having the confidence to trust that you have recognised a problem that needs a solution that makes the difference. “You see the market for this, and you’re desperate to make a business out of it,” Obong explains, “so you need to back yourself.”
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