Nigeria’s Prospa receives $3.8M pre-seed to offer small businesses banking and software services

Image : Prospa

Nigerian  fintech startup, Prospa wants to change that and has begun to tap into this market. Prospa was one of the 10 African startups participating in Y Combinator’s winter batch. A few months past graduation, the startup, combining both worlds of banking and business management tools for micro and small businesses, has closed a $3.8 million pre-seed round.

Prospa was founded by Frederik Obasi, Chioma Ugo and Rodney Jackson-Cole. As a serial entrepreneur running businesses in tech and media, Obasi experienced how tough running operations and banking his business simultaneously was in Nigeria.

Banks only concerned themselves with providing some financial services so people like Obasi had to look for software or personnel to cater to the operational parts of their businesses.

For someone who runs a large business with a considerable influx of cash, it is easy to assign staff or buy software to delegate tasks. But it can be expensive and a daunting task for smaller businesses; that’s why most of them struggle.

Sensing an opportunity, Obasi and his team launched Prospa under the premise that they would cheaply solve the needs of these small business owners in banking and software.

“When I left my last business, I wanted to do something really big and something that I knew the problem inside out. That’s why I started Prospa,”