Sorted, a Hong Kong-based startup, has raised $4.4 million in funding to bring stablecoin wallets to the overlooked market of feature phones in emerging economies. This investment, led by Tether and Gnosis, highlights the potential for financial inclusion in regions where traditional fintech solutions fall short.
The company's unique approach targets the hundreds of millions of people who use basic, affordable phones that are often ignored by the fintech industry. These phones, typically costing around $20, are prevalent in cities like Lagos, Nairobi, Dar es Salaam, and Karachi. Sorted's stablecoin wallet is designed to work seamlessly on these devices, offering a lightweight app that weighs under 10MB, making it accessible to users with limited data and smartphone capabilities.
The funding comes as Sorted reaches a significant milestone with over 500,000 downloads across 160 countries, with a strong user base in Nigeria, Kenya, Tanzania, and Pakistan. These markets are characterized by currency instability, limited banking access, and high costs for cross-border transactions, making Sorted's solution particularly valuable.
Stephen Browne, CEO of Sorted, emphasizes the company's early recognition of the untapped market: 'Three years ago, we built a wallet for a $20 phone, and nobody else thought it was worth building for. Now, with 500,000 downloads, we know better. This round is about scaling to reach the next 100 million.'
Tether's reinvestment in Sorted reflects a broader understanding of financial inclusion, which goes beyond better apps to include access that works on constrained devices and limited data networks. Paolo Ardoino, CEO of Tether, states, 'To achieve true inclusion, we must reach hundreds of millions who cannot afford smartphones or data plans. That's why we've reinvested in Sorted Wallet.'
Gnosis, another key investor, sees Sorted as a crucial distribution layer for bringing stablecoin-based payments into real-world use, especially in the underserved global economy. Daniele Pinna, General Partner at Gnosis VC, highlights the practical bridge Sorted provides between stablecoin infrastructure and everyday usage.
Looking ahead, Sorted plans to expand its presence in West and East Africa and South Asia, focusing on carrier partnerships and distribution channels that extend beyond app stores. The company believes that the next wave of crypto adoption will come from those who have never had access to financial apps, using phones that the industry has largely overlooked.
Sorted's mission is to simplify and democratize digital financial services, making them accessible to everyone, regardless of device or economic status. With its innovative approach, Sorted is poised to play a significant role in the future of finance, especially in regions where traditional financial services are limited.
