Kippa Reveals $8.4M Funding for Merchant Financial Management Platform | The Guardian Nigeria News
Kippa is a financial management and payment platform for Nigerian small businesses.
Kippa, the financial management and payment platform for Nigerian small businesses, has announced that it has raised $8.4 million in a new funding round. The start-up provides digital business and financial management solutions to small and medium-sized enterprises (SMEs) in Nigeria. It has secured support from international investors to develop products that will help SMEs grow their businesses.
Even though tens of millions of Africans have gone online over the past decade, most Nigerian traders still run their businesses offline. Running a small business is chaotic, from managing money to keeping track of inventory, business records, personnel, and vendors. Merchants are faced with manual processes or expensive technologies that are time-consuming and error-prone, which prevent them from accessing financing to run their business.
“We expect the number of small businesses doing digital to grow exponentially over the next three to five years. As more and more small businesses go online, Kippa will own the money button on those merchants’ devices, says Kippah 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. Today, the company has further expanded its offer. 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 Season Credit), Crestone VC (led by Inanc Balci, co-founder and former CEO of Lazada), VentureSouq, Horizon Partners and Vibe Capital.
READ MORE: Kippa Obtains Super Agent Banking License from Central Bank of Nigeria
Since the pre-seed announcement in November 2021, Kippa has made tremendous strides in recruiting former regulators and former senior executives from 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.
Kippa has also 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. The EFInA “Access to Financial Services in Nigeria 2020 Survey” estimates that around 49.3 million business owners run SMEs in the country. Ekezie-Joseph believes that Kippa is well positioned as the benchmark financial services provider for these SMEs.
“Our mission is to make it easy for anyone to start and run profitable small businesses in Africa. That’s why we’re building a comprehensive suite of financial software and services that enable this ambition, empowering African business owners. We say this because we spent time understanding their most important needs,” says Ekezie-Joseph.