Nigerian monetary administration app for retailers Kippa baggage $8.4M

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-JosephDuke Ekezie and Jephthah Uche — acquired funding from backers akin to Goodwater Capital, TEN13 VC, Rocketship VC, Saison Capital, Crestone VC, VentureSouq, Horizon Companions and Vibe Capital. Kippa mentioned the funding will permit it to develop monetary merchandise that assist SMEs develop their companies and develop its group in Nigeria.

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

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

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

As such, startups have launched numerous bookkeeping options to digitize operations of those small companies in a standard retail sector price greater than $200 billion alone in Nigeria. With Kippa, small enterprise homeowners can preserve monitor of their day by day revenue and expense transactions, create invoices and receipts, handle stock and customarily monitor how their companies ebb and stream over time. Within the interview with CEO Ekezie-Joseph final November, he mentioned Kippa had greater than 130,000 energetic companies, starting from small kiosks and avenue nook outlets 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 have been energetic. 

Any firm offering providers to 1000’s of small and medium companies throughout numerous cities in Nigeria has an in depth 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. 

Nearly all of small companies in Nigeria aren’t formally registered because of prices and complexities in navigating your complete course of. Thus, a number of months in the past, Kippa launched what Ekezie-Joseph described as one of many quickest incorporation merchandise for small companies. “We’ve constructed a product on high of the present Kippa product that permits companies to register in 3 days for N15,000,” mentioned Ekezie-Kennedy, indicating his platform’s various to assist these companies incorporate legally. This characteristic types the premise for Kippa’s plans to stack monetary merchandise apart from getting important traction and driving extra income, the CEO added. 

Final week, the corporate introduced 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 akin to money withdrawals and deposits, checking account opening, payments and utility funds, and insurance coverage to particular person clients who come to their small outlets repeatedly to make on a regular basis purchases.

“Now we have over 500,000 retailers on our app and there’s lots 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 outlets 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, 10 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 embody 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. 


Picture Credit: Kippa

Kippa has raised greater than $11 million in a full yr of operation. The corporate and its rivals have satisfied buyers that the market they serve is huge for each participant to co-exist. Stories buttress that time as an estimated 49.3 million enterprise homeowners 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 thing stick. Nonetheless, Kippa’s credit score and lending arm, which the CEO predicted final yr as a income generator for the corporate, has been placed on maintain in the meanwhile, 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 have now a lending licence in Lagos and Abuja, we’re spending our time constructing out the arms of the enterprise that present and proceed to increase transactional knowledge that we have now on companies. This enables us to construct a more healthy mortgage ebook after we begin lending.”

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