Financial management and payments platform, Kippa, said it raised $8.4 million in a new round of funding with the aim of building financial services that will help SMEs.
The start-up offers digital business and financial management solutions to small and medium-sized enterprises (SMEs) in Nigeria.
Although tens of millions of Africans have gone online over the past decade, most Nigerian business owners still conduct their businesses offline. Small business administration is chaotic, from managing money to tracking goods, financial documents, employees and vendors.
Merchants have to deal with labor-intensive, error-prone manual operations or expensive technology that prevents them from getting the financing they need to run their businesses.
“We expect the number of small businesses doing digital to grow exponentially over the next three to five years. As more small businesses go online, Kippa will own the money button on those merchants’ devices, says Kippa CEO Kennedy Ekezie-Joseph.
Founded in June 2021, Kippa raised $3.2 million in pre-seed funding in November 2021 with the idea of onboarding merchants with an easy-to-use mobile accounting app to help them digitize accounting and collect debt from customers.
Currently, the company has further expanded its offerings. It provides a suite of financial services that allow small business owners to legally incorporate their business, open bank accounts, receive and send payments, set up online stores, and manage their entire business. business from a single platform.
In the oversubscribed round, Kippa welcomed global investors including Goodwater Capital, TEN13 VC, Rocketship VC, Saison Capital (the venture capital arm of Credit Saison), Crestone VC (led by Inanc Balci, co-founder and former CEO of Lazada), VentureSouq, Horizon Partners and Vibe Capital.
Since the pre-seed announcement in November 2021, Kippa has made tremendous progress in recruiting ex-regulators and ex-senior executives to top start-ups including OPay, BharatPe, Khatabook, TeamApt, OKCredit, NIBSS and Unified Payments, among others.
Key appointments include the hiring of former Nigeria Inter-Bank Settlement System (NIBSS) Deputy Managing Director, Niyi Ajao as Chairman; Toyin Albert as Executive Director of Payment Services; and Osagie Alonge as Director of Marketing.
Spread across all 774 local governments in Nigeria and serving over 500,000 merchants within its network, the company has seen the annualized transaction recorded on the platform exceed $3 billion.
Last week, TechEconomy reported that Kippa had obtained a license from the Central Bank of Nigeria to operate as a super agent under the payment solution service license category.
The license allows Kippa to leverage its massive distribution to merchants to transform everyday neighborhood stores into a one-stop-shop for essential financial services such as cash withdrawals and deposits, opening bank accounts, payments bills and utilities and insurance.