Kenyan Bitcoin exchange BitPesa has raised a $1.1 million in a second round of funding that was led by Pantera Capital and included Crypto Currency Partners, Stephens Investment Management, Bitcoin Opportunity Corp., and Future/Perfect Ventures.

As part of the deal Dan Morehead of Pantera Capital will take a seat on Bitpesa’s Board of Directors.

Founded in November 2013, the Narobi-based startup pitches itself as an easy way to send money to Africa, although it primarily has an East African focus, offering exchange services to Kenyan Shillings, and Bitcoin payments to Kenya and Ghana.

BitPesa Founder and CEO Elizabeth Rossiello explained in a blog post that the nine-man team has seen growing results.

“Our average trade amount increases daily and each user is trading more frequently every month – we are seeing real traction” Rossiello said.  “BitPesa is also working with international businesses in the region…[and] last month we started selling Bitcoins and that has been well received by Kenyan and Ghanaian small businesses needing to make payments abroad.”

Rossiello said that the company has a full calendar of events planned across East Africa, including traders workshops in Nairobi, Kisumu, Mombasa & Accra, and there are a plans to launch Bitcoin buy/sell in Tanzania and Uganda in the coming few weeks.

Africa presents a serious challenge for startups with large parts of it lacking electricity, let alone internet access, and if it’s argued knowledge of Bitcoin isn’t high in the West, its closer to non existent in Africa.

A Bitcoin startup in Africa, though, provides a lot of opportunities, particularly when it comes international money transfers. With many locals not even having access to banking, a service such as BitPesa has the potential of providing a solution to a very tangible problem.

Total funding to date for BitPesa, including the new round, is $1.7 million.

Image credit: BitPesa