Home Technology Kippa receives $3.2m pre-seed to scale small businesses in Nigeria

Kippa receives $3.2m pre-seed to scale small businesses in Nigeria

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Nigerian startup, Kippa has raised $3.2 million in pre-seed funding to help better the life span of small businesses by using its finance management app.

This funding was led by Berlin-based VC, Target Global and other participating VCs include Entrée Capital, Alter Global, Rally Cap Ventures as well as other angel investors.

In the past years, lots of businesses have stayed offline and have solely relied on traditional book-keeping methods and the use of pen, paper or ledgers for storing important information.

Through its finance management app, Kippa hopes to address this inefficiency which is not only time-consuming for businesses but also introduces errors that can affect businesses in diverse ways.

Kippa claims that its app is built to help small business owners to keep track of their daily income and expense transactions while creating invoices and receipts, managing inventory and monitoring how their businesses flow over time.

Co-founder and CEO of Kippa, Kennedy Ekezie, explained that the biggest problem businesses face is the dearth of working capital or credit.

He said, “For us, what we do is we have such a unique opportunity to provide financial services to users. For most of them, Kippa is the first B2B SaaS app that they’re using. Also, we do have a unique opportunity to help them accept online digital payments, to provide them with working capital, digital savings and plug them into the financial ecosystem.”

He also added that Kippa wants to provide access to credit in a unique way, stating that it is choosing to be digitally native, rather than pursue the digitization of analogue processes that previous players have done.

While the company said it has recorded more than $300 million in the past five months with over 130,000 active businesses in addition to growing an average of 126% month-on-month since launching in June, the firm’s investment director, Lina Chong noted that these metrics indicate a strong need for the product in the Nigerian market.

“Our investment in Kippa will enable it to grow and be the first-choice financial management solution for small businesses in Africa,” he stated.

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