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Nigerian financial management app for merchants Kippa bags $8.4M in new funding

Kippa, the Nigerian startup enhancing the lifecycle of small companies throughout the nation with its monetary administration and funds platform, has raised $8.4 million in an oversubscribed seed spherical. 

The startup — launched final June by Kennedy Ekezie-Joseph, Duke Ekezie and Jephthah Uche — acquired funding from backers reminiscent of Goodwater Capital, TEN13 VC, Rocketship VC, Saison Capital, Crestone VC, VentureSouq, Horizon Companions and Vibe Capital. Kippa mentioned the funding will enable it to develop monetary merchandise that assist SMEs develop their companies and develop its crew in Nigeria.

The corporate announced its $3.2 million pre-seed from Goal International and different traders final November.

Kippa is without doubt one of the many bookkeeping platforms for small and medium companies in sub-Saharan Africa. Related suppliers within the sub-Saharan area embrace Pastel, Bamba, OZÉ and Bumpa. 

Earlier than such options, many of those companies ran operations reminiscent of managing cash, stock monitoring, and data of workers and suppliers offline, primarily with pen and paper or ledgers. All these inefficiencies, asides from being time-consuming, result in errors and impacts money move and finance, which is why virtually 9 out of 10 small companies fizzle out within the first 5 years.

As such, startups have launched varied bookkeeping options to digitize operations of those small companies in a conventional retail sector price greater than $200 billion alone in Nigeria. With Kippa, small enterprise house owners can maintain observe of their day by day revenue and expense transactions, create invoices and receipts, handle stock and customarily monitor how their companies ebb and move over time. Within the interview with CEO Ekezie-Joseph final November, he mentioned Kippa had over 130,000 lively companies, starting from small kiosks and road nook retailers to native meals distributors and high-end retailers. Though the platform has grown to accommodate over 500,000 small companies, Ekezie-Joseph didn’t say what number of had been lively. 

Any firm offering providers to 1000’s of small and medium companies throughout varied cities in Nigeria has an intensive distribution community to construct new merchandise on high. And in Kippa’s case — the corporate’s retailers are unfold throughout all 774 native governments in Nigeria — it has made significant strides in what choices it gives to retailers. 

The vast majority of small companies in Nigeria aren’t formally registered resulting from prices and complexities in navigating your complete course of. Thus, First, Kippa launched what Ekezie-Joseph described as one of many quickest incorporation merchandise for small companies just a few months in the past. “We’ve constructed a product on high of the present Kippa product that enables companies to register in 3 days for N15,000,” mentioned Ekezie-Kennedy indicating his platform’s different to assist these companies incorporate legally. This function kinds the idea for Kippa’s plans to stack monetary merchandise in addition to getting vital traction and driving extra income, the CEO added. 

Final week, the corporate introduced that it obtained a licence from Nigeria’s apex financial institution, the Central Financial institution of Nigeria (CBN), to function as a Tremendous Agent, similar to company banking gamers OPay and TeamApt. With the licence, retailers on the Kippa platform can, in flip, act as brokers and supply monetary providers reminiscent of money withdrawals and deposits, checking account opening, payments and utility funds, and insurance coverage to particular person clients who come to their small retailers often to make on a regular basis purchases.

“Now we have over 500,000 retailers on our app and there’s plenty of alternatives for us to do extra for them and supply extra monetary providers,” mentioned Ekezie-Joseph. “The tremendous agent licence permits retailers and typical neighbourhood retailers who already use our bookkeeping app right into a one-stop-shop for important monetary providers for his or her clients.”

Getting one of the best palms to drive its blitzscaling efforts is vital for a younger firm rising this quick—Kippa claims its annualized transaction recorded on the platform has exceeded $3 billion, ten instances what it had final November. To that impact, the finance administration platform has recruited ex-regulators and senior executives at startups like OPay, BharatPe, Khatabook, TeamApt, OKCredit, NIBSS, and Unified Funds, amongst others. A few of them embrace Toyin Albert as government director of funds providers, Osagie Alonge as director of promoting and Niyi Ajao, the ex-deputy managing director at Nigeria Inter-Financial institution Settlement System (NIBSS) as chairman. 

Kippa

Kippa has raised over $11 million in a full 12 months of operation. The corporate and its opponents have satisfied traders that the market they serve is huge for each participant to co-exist. Stories buttress that time as an estimated 49.3 million enterprise house owners run SMEs within the nation. However as these platforms pitch completely different approaches to companies — bookkeeping, reference to suppliers, banking and software program providers — credit score is the glue that makes every little thing stick. Nonetheless, Kippa’s credit score and lending arm, which the CEO predicted final 12 months as a income generator for the corporate, has been placed on maintain in the interim, hopefully not too lengthy that it impacts the startup’s ambition to be small companies’ go-to monetary service supplier.

“Credit score stays an insanely big alternative for us. And whereas we’ve got a lending licence in Lagos and Abuja, we’re spending our time constructing out the arms of the enterprise that present and proceed to develop transactional information that we’ve got on companies. This enables us to construct a more healthy mortgage e-book once we begin lending.”

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