Prospa, a Nigerian fintech startup acquires $3.8m Pre-Seed Funding. They are on a mission to help the country’s roughly 40 million underserved micro businesses. They see a significant market potential since banks rarely care about providing micro organizations with knowledge and growth prospects about their customers and products, instead simply presenting a series of bank statements as if that’s all they want. Prospa is ready to change that and has already started tapping into the market.
The company qualified for Y Combinator’s winter batch as one of the top ten startups in Africa in March. Prospa acquires $3.8m round just months after graduation. They focus on entrepreneurs and freelancers acting as the operating system for their company and were founded by Kioma Ugo, Frederik Obagi, and Rodney Jackson Cole. Prospa’s business account numbers and other features are accessible through the platform.
Account numbers and a variety of additional features are available to registered firms on the platform. In addition to providing bank accounts, they are guided through the process of formalizing their company.
Obasi told TechCrunch that the company has traction with tens of thousands of organizations and is expanding at a rate of 35 percent each month. He went on to say that small firms have used the site to send out over 360,000 invoices.
Pricing is then determined by the turnover of the company. For example, a company with a $100,000 ($200) annual revenue is unlikely to pay a subscription price to Prospa. Businesses having a turnover of more than $100,000, on the other hand, pay monthly fees of between 3,000 ($6) and 5,000 ($10).
African venture capital has witnessed remarkable numbers from all corners of the continent at all levels of investment over the last year. For example, Prospa’s pre-seed investment is currently the largest of its sort in Nigeria and Sub-Saharan Africa. Only Telda, an Egyptian fintech, has raised more money in Africa.
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