Piggybank.ng, an online and mobile app savings platform targeted at African millennials, this morning announced it has closed a seed funding of $1.1 million from high net worth individuals, led by Olumide Soyombo, founder of LeadPath Nigeria, and with participation from international and pan-African investors, Village Capital and Ventures Platform.
“In a country such as Nigeria, almost everything has to be paid in advance. The majority of Nigerians struggle to save their income, manage cash flow and build credit, which is a huge problem as around 80 percent of Nigerians need to save a minimum of 40 percent of their monthly income, in order to survive,” says Odunayo Eweniyi, co-founder and chief operating officer (COO) of Piggybank.
“This is the sheer scale of the challenge we are embracing; to actively promote a savings culture in Nigeria and act as the savings infrastructure to millions of people who want a safe, transparent and innovative platform to assist them in managing their finances, on their journeys to financial freedom.”
The startup is targeting Nigerian Millenials and low-middle income earners, many of whom have no access to credit. Since launching, the platform has attracted 53,000 registered users – of which approximately 60 percent are Nigerian Millennials – with savings in excess of US$5 million.
In a press release Joshua Chibueze, co-founder and CMO of Piggybank notes that “Today’s announcement allows us to expand and capitalize on the many opportunities that the market presents us with. With this fundraiser, we can invest significantly in our people and products, as we build a digital financial warehouse accessible to millions of Africans whose savings woes we want to put firmly behind them.”
Piggybank.ng also claims to have recently acquired a micro-financing license from the Central Bank of Nigeria (CBN). The license, which provides the relevant regulatory cover, will allow them independence from partnering with banks.
As of June 2018, the company will also be expanding its product range to include Smart Target, a group savings tool, that can be scaled from family-size to large corporations, based on the age-long West African tradition of ajo or esusu to leverage the power of communal savings and harness the network effect of accountability.
