Portfolio News

Mid-Investment Update: How Rumsan is Transforming Digital Humanitarian Aid for Disconnected Communities

Rumsan Blockchain Nepal

Dec 11 , 2024

Blockchain

Rumsan

Nepal

Amount invested $364,507 USD Funding Status active growth period Founded in 2018 by Ashmita Manandhar Shrestha & Rumee Singh

Female Founded

DPG Certified

Introduction

Rumsan, a blockchain company with a mission to create social impact, has developed Rahat, an Open Source platform designed to empower vulnerable communities by providing secure financial access. Rahat utilizes blockchain technology to streamline aid distribution, enhance digital and financial literacy, and build resilience for populations affected by climate challenges.

With Growth Funding from the UNICEF Venture Fund, Rumsan is expanding Rahat’s capabilities to integrate a crypto-based cash and voucher assistance (Crypto CVA) system. This initiative leverages stablecoins—digital currencies tied to stable assets like the US dollar, ensuring their value doesn’t fluctuate—to enable efficient and secure aid disbursements. By building a fully Open Source disbursement system featuring multi-signature SAFE wallets and verification mechanisms, Rumsan ensures secure transactions aligned with its Digital Public Goods Alliance (DPGA) certification. The funding supports further development, community building, and the promotion of financial resilience for underserved populations globally.

Harnessing Blockchain and Web3 for Humanitarian Efficiency

Rahat uses Base, an Ethereum Layer 2 solution (think of it as a shortcut for Ethereum that reduces transaction fees and speeds up transactions) built on the Optimism Superchain. The Superchain is essentially a network of connected "blockchain highways" designed for smoother and faster movement of digital money and data. Base’s efficiency ensures that more aid funds reach beneficiaries rather than being consumed by administrative costs.

Through Base, Rahat integrates seamlessly with SAFE wallets, which require approvals from multiple authorized users for every transaction, adding a layer of security to fund management. Additionally, Rahat employs a signature-based wallet verification process, ensuring secure onboarding of beneficiaries so aid reaches the right people without risk of fraud. This combination of scalability, security, and transparency makes Rahat a game-changer in humanitarian aid.

From Seed to Scale: Evolution Through UNICEF Venture Fund

With seed-stage funding from the UNICEF Venture Fund, Rumsan developed Rahat as a Cash and Voucher Assistance (CVA) platform tailored for humanitarian use. The platform introduced a digital system enabling beneficiaries to receive aid and redeem it through partnered vendors, ensuring transparency and security even in remote or underbanked regions.

Providing user training for effective system usage. — Providing user training for effective system usage

Building on this foundation, Growth Funding has enabled the shift from a private network to a public blockchain. Using tools like Base and stablecoins, Rahat can now transfer aid funds directly from donors to beneficiaries in seconds—avoiding intermediaries that could slow the process. The public blockchain approach also highlights the potential of cryptocurrency in humanitarian work, where speed and accuracy can save lives.

What Sets Rahat Apart?

Rahat stands out by using stablecoins for aid distribution, making the process faster, safer, and more transparent, particularly in areas affected by natural disasters or conflict. Unlike traditional cash transfer systems, Rahat eliminates intermediaries, reducing delays and paperwork.

Through its integration with SAFE wallets and signature-based beneficiary verification, Rahat ensures tamper-proof fund management and secure delivery of aid. This unique combination of speed, trust, and transparency positions Rahat as a vital tool for modern humanitarian efforts.

“The investment has been crucial in building on the foundations of our first stage and taking the build and implementation of our solution further. With the tech support and mentorship, we look forward to growing the open source solution and making a case for how humanitarian aid can be further made efficient with stablecoins. The investment will also create the stage for us to build our partnerships and network on the global crypto front.”—Rumee Singh, CEO, Rumsan

The Open Source Advantage

Rahat’s Open Source foundation fosters collaboration and innovation. By using Open Source tools, Digital Public Goods, and contributions from the Open Source community, Rumsan has expanded Rahat’s reach and functionality. Open source allows for cost-effective improvements, with contributions ranging from bug fixes to feature enhancements.

This collaborative approach helps Rahat grow beyond what Rumsan could achieve alone, ensuring scalability, sustainability, and continual improvement driven by global input.

Achievements in the First Half of the Investment Period

In the initial phase of Growth Funding, Rumsan enhanced Rahat’s technology, achieving a 90% increase in transaction speed and reliability. This improvement ensures that aid disbursements are faster and more efficient. Preparations for pilot implementations included a demo in South Sudan, providing valuable insights for scaling the platform.

On the Open Source front, Rumsan transitioned to a more accessible licensing model and began planning workshops to engage contributors. These steps have strengthened the foundation for Rahat’s future growth and community involvement.

These advancements facilitated further field implementations. Rumsan worked with the Danish Red Cross and GSMA Innovation Fund in 2024 to support over 4,000 households in far western Nepal during the monsoon as part of streamlining anticipatory action efforts. Rumsan is also piloting their work with Mercy Corps Nepal in 2025.

Focus for the Second Half of the Investment Period

During the second half of the investment period, Rumsan will focus on implementing pilot projects and scaling Rahat’s technical capabilities. A key element will be exploring partnerships with Kotani Pay, an alumni of the UNICEF Venture Fund. Kotani Pay has developed an Open Source platform that enables users to off-ramp from crypto to fiat currency using a simple interface that does not require internet connectivity or a bank account. Integrating Kotani Pay into Rahat would allow beneficiaries to seamlessly convert stablecoins into local currency, even in areas with limited infrastructure.

Efforts will also center on refining Rahat’s user experience, guided by feedback from ongoing testing, and improving documentation to make the platform more accessible. Hackathons and workshops will be organized to further engage the Open Source community. The results and insights from pilot implementations will be captured in a detailed report to demonstrate Rahat’s impact and scalability.

Collaboration Opportunities

Rumsan seeks partnerships and engagement focused on the below verticals to address key challenges and scale its novel solution:

Pilot Partners: Organizations interested in piloting Rahat

Third-Party Wallet Integration: Partners in financial off-ramping solutions

Open Source Engagement: Share feedback or join the community via Rahat’s GitHub Discussions.

Interested organizations are invited to connect with Rumsan at [email protected] to work together in paving the way for faster, more transparent, and inclusive humanitarian aid systems worldwide.