Kotani Pay

History and Founding

Kotani Pay was founded in 2020 in Nairobi, Kenya, during the COVID-19 pandemic. The founding team, as listed by the UNICEF Venture Fund, includes Felix Kanyi Macharia, Stephen Kimani Kiarie, Jonathan Morgan Mogan, Samuel Mwangi Kariuki, Brian Amayi Kimotho, Keith Mandela Makori, and Daniel Kimotho Kibuga. CEO Felix Macharia, a former medical doctor, recognized that most blockchain solutions were built for smartphone users, excluding the majority of Africans who rely on feature phones. This insight drove the development of a USSD-based middleware platform for crypto-to-fiat transactions without internet connectivity. Nigerian full-stack founder Lemuel Okoli later joined as a co-founder.

Technology and Products

Kotani Pay’s platform is built around a core value proposition: enabling digital asset businesses to offer local currency payouts across Africa reliably and affordably. Key products include the Kotani Pay API, a white-label RESTful API for cash-in/cash-out operations integrated with mobile money, bank transfers, and local payment rails; the USSD Gateway, which translates blockchain transactions into USSD commands so users can send crypto and withdraw funds via basic short codes without a smartphone; Stablecoin Infrastructure supporting USDC and USDT transfers to avoid volatility; and B2B Payout Services for last-mile disbursement to end users in local currencies. The platform abstracts public/private key management, making it accessible to non-technical users.

Market Position and Impact

Kotani Pay targets the critical gap in Africa’s digital asset ecosystem: converting cryptocurrencies into local currencies at the last mile. By leveraging USSD, it reaches rural and low-connectivity areas, many of which are unbanked. The solution is especially relevant for cross-border remittances, freelance payments, and humanitarian aid distribution. The company competes with other blockchain payment gateways like BitPesa and Yellow Card but differentiates through its focus on feature-phone compatibility. Its partnership with Circle and selection for the UNICEF Venture Fund highlight its potential for financial inclusion.

Licensing and Compliance

Kotani Pay is registered as a Financial Service Provider under South Africa’s Financial Sector Conduct Authority (FSCA) under license number 53594. This regulatory foothold allows it to operate within South Africa’s recognized financial services framework and signals a commitment to compliance as it expands into additional jurisdictions. The company also adheres to anti-money laundering (AML) and know-your-customer (KYC) standards.

Funding and Growth

In September 2023, Kotani Pay raised a $2 million pre-seed round led by P1 Ventures, with participation from DCG/Luno and Flori Ventures. According to PitchBook, total funding reached $3 million as of 2025. The funding supports expansion into Rwanda, Senegal, Ivory Coast, Tanzania, and Nigeria. The company continues to grow its network of mobile money integrations and B2B partnerships.