Nigeria’s Kippah Sees $ 3.2 Million In Pre-Seed For Small Business Financial Management Application

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Millions of small businesses, especially in developing countries, have gone offline for most of the past decade. Subsequently, most of them continue to use pen and paper entries or records for bookkeeping and keeping vital data. Some people in Nigeria go so far as not to keep anything nearby. Besides being tedious, these failures lead to mistakes and affect income and money, which is why about nine out of ten small businesses fail in their first five years in Nigeria.

The startup’s new funding round was led by Berlin-based VC Target Global. Entrance Capital, Alter World and Rally Cap Ventures are the opposite of the participating VCs.

Nigerian Kippah, which tries to improve the life cycle of these small businesses using its financial management software, has secured $ 3.2 million in pre-seed investment.

Various Angel Buyers – Babs Ogundeyi, CEO of Kuda; Sriram Krishnan, an investor in Khatabook; Raffael Johnen, CEO of Auxmoney; Chris Bouwer; Kyane Kassiri; Edward Suh of Goodwater Capital; and Sajid Rahman – invested in the startup.

One of the most essential options of the business-based app is that it helps retailers monitor receivables and send them automated reminders. The company claims that retailers who use Kippah in this way “get money owed 3 times faster.”

Kippa works as a simple app where small business owners can monitor their daily income and expense transactions, create invoices and receipts, manage inventory, and generally monitor how their businesses grow and move over time.

Most of these options are aimed at integrating a variety of businesses in Nigeria on the platform; Nevertheless, the technique is to present them with the credit score and different monetary companies.

There is a cultural undertone to this, co-founder and CEO Kennedy Ekezie told TechCrunch. Almost all transactions made by small businesses are in cash and over 30% of gross sales are based on credit score. So, basically, the most important disadvantage that companies face is not the lack of accounting or instruments, but the lack of working capital or credit score.

“For us, what we do is we have such a new alternative to providing money market companies to clients. For many of them, Kippa is the primary B2B SaaS application they use, ”said the CEO, who started the business with Duke Ekezie and Jephthah Uche. “And we have a new alternative to help them settle for digital funds online, to provide them with working capital, digital financial savings and connect them to the monetary ecosystem.”

Many startups catering to the varied needs of small businesses and startups have launched with bold guarantees over the past 12 months – all with completely different approaches; some want to take care of the bookkeeping, some are eager to connect small businesses with suppliers, others introduce banks and software companies. However, in reality, all converge on one level, which provides access to the credit score. CEO Ekezie says that while this is true, Kippa “chooses to be digitally native, rather than continuing to digitize the analog processes that previous players have completed.” And this unites the company aside, based on the founder.

As Kippah remains free for businesses, the introduction of a credit score and other money market companies will allow the business to generate income by levying fees or lending or working capital activities. The accounting and finance app claims to have grown an average of 126% month-over-month since its launch in June. With more than 130,000 dynamic businesses, ranging from small kiosks and outlets around the corner to local food distributors and high-end retailers using the app, Kippa claims to have made more than $ 300 million up to now 5 months.

For lead investor Goal World, these measures indicate strong demand for the product in the Nigerian market; therefore, that is why he invested. According to Lina Chong, the agency’s finance director, “our funding to Kippah will allow it to grow and be the premier monetary administration response for small businesses in Africa. Ekezie and his co-founders launched Kippa in February 2021. Prior to Kippa, the trio founded Africave, a software talent search platform in 2019 that closed its doors last year.

According to Ekezie, they left Africave after recognizing impending supply constraints that could limit the development of the company. The CEO said the founders were looking to unravel another downside that they saw as excellent for its strengths. After embarking on a market founders tour and bringing together a number of small business owners across Nigeria to understand their pain factors, Kippa was born.

Summary of the news:

  • Nigeria’s Kippah Sees $ 3.2 Million In Pre-Seed For Small Business Financial Management Application
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