Overview
Zoona was an agent-based money transfer and financial services platform operating in Zambia from approximately 2009 until its Zambian operations ceased around 2023. Unlike dominant telco-led services (MTN MoMo, Airtel Money), Zoona was a standalone fintech that built a proprietary agent network. It was notable for its distinct model: independent of telco infrastructure, with agents branded as "Zoona Tellers" in distinctive orange booths, backed by significant impact-investor capital. At its peak, Zoona reportedly processed over $1 billion in annual transaction value (unverified) and operated thousands of agent locations. Despite this scale, Zoona failed to reach profitability and wound down its Zambian money transfer operations.
History
Zoona was founded in 2009 by Brett Magill, Brad Magill, Mike Quinn, and Keith Davies. It initially focused on domestic over-the-counter (OTC) transfers targeting Zambians sending money to rural family without bank accounts. Zoona differentiated itself through independent agents operating branded orange kiosks at marketplaces and bus stations.
The company raised substantial capital across multiple rounds from impact investors including Omidyar Network, Quona Capital, and the IFC (unverified). Zoona also briefly expanded into Malawi and Mozambique before scaling back.
From roughly 2018, Zoona attempted to pivot toward a broader fintech platform with agent business tools and consumer financial services. The pivot failed to offset the cost of a physical network in a market dominated by telco-led competitors. By 2022-2023, Zoona wound down its Zambian operations (unverified).
How It Works
Zoona operated an OTC model, distinct from wallet-based telco services.
- Sending: Sender visited a Teller, provided recipient's phone number and cash.
- Receiving: Recipient received an SMS with a code and collected cash from any Zoona Teller with ID.
- No wallet required: The core service was SIM- and network-agnostic.
A wallet product (Zoona Sunga) was later introduced but never scaled (unverified).
Services Offered
Core Services
- Domestic OTC money transfers
- Bill payments (ZESCO, DSTV, others)
- Airtime purchases (cross-network)
Payments
Not applicable.
Financial Products
No financial products offered at scale. Zoona explored small business loans for its agents.
International Services
No significant international services. Limited cross-border partnerships were explored (unverified).
Fees & Charges
Zoona charged transaction-based fees tiered by value in Zambian Kwacha (ZMW).
- Transfers: Tiered by amount, charged to sender; competitive with telco services.
- Bill payments: Transaction fees applied.
- Cash collection: Free to recipient in most cases.
Zoona's cost structure -- maintaining an agent network without telco revenue cross-subsidy -- made profitable pricing difficult.
(Fees are historical; Zambian operations have ceased.)
Regulatory & Licensing
Zoona operated under the Bank of Zambia's framework via the National Payment Systems Act (2007). As a non-bank, non-telco PSP, Zoona required a payment systems designation from BOZ. Customer funds were held in trust accounts at licensed commercial banks.
Infrastructure & Network
- Agent network (historical): Estimated 2,000-3,000+ Teller locations at peak (unverified), concentrated in urban marketplaces, bus stations, and border towns.
- Branding: Distinctive orange kiosks.
- Technology: Proprietary transaction platform independent of MNO USSD infrastructure.
- No SIM dependency: Network-agnostic OTC model.
Market Position & Competition
Zoona carved a niche in Zambia's OTC transfer market, particularly for urban-to-rural remittances. As MTN MoMo and Airtel Money expanded, Zoona's position eroded. Telco competitors benefited from existing subscriber relationships, telecom revenue cross-subsidization, network effects, and larger agent footprints. Zoona's OTC users did not maintain balances or transact frequently, limiting revenue per user.
Ownership
Operated by Zoona Transactions International Limited, incorporated in Zambia with later presence in South Africa. Key investors included (unverified): Omidyar Network, Quona Capital, IFC, and 4Di Capital. Brett Magill served as CEO for much of the company's history. Total venture funding was estimated at $30-40 million+ across multiple rounds (unverified).
Controversies
- Failure to achieve profitability: Zoona's structural cost disadvantage versus telco-led competitors proved insurmountable despite years of operation and significant capital.
- Strategic pivots: Multiple pivots -- from OTC transfers to fintech platform to agent tools -- consumed management attention without yielding a sustainable model.
- Industry case study: Zoona's trajectory is widely cited in mobile money literature as illustrating the structural advantages MNO-led services hold over independent fintech competitors where telcos control distribution and the customer relationship.