Nigerian fintech Billboxx has raised $1.6 million in a pre-seed round to scale operations, expand product offerings, and hire new talent.
The funding, a mix of debt and equity, came from Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Why it matters
- SMEs in Africa often face cash flow issues due to delayed payments from larger enterprise partners. Billboxx provides invoice financing that helps SMEs access advance payments before their clients pay, offering a lifeline for smaller businesses.
- Billboxx also offers business banking services to help SMEs manage finances more efficiently, aiming to be a one-stop solution.
By the numbers
- Founded in 2023, the company claims to process ₦1 billion ($1.3 million) monthly with zero defaults.
- Fees include up to 5% for invoice financing and 1.5% for transactions made on its platform.
What they’re saying:
- “Every business we interacted with had billing inefficiencies and cash flow problems. Some still use manual or Excel-based invoicing,” said co-founder Justus Obaoye.
- “We plan to become the financial operating system for SMEs in Africa,” he added, emphasizing their focus on tailoring solutions for SMEs rather than mid-market or enterprise businesses.
How it works
- SMEs using Billboxx must secure approval from their enterprise partners before invoice payments are advanced.
- The company acquires SMEs via partnerships with larger enterprises, serving clients like Monument Distillers and the International Institute of Tropical Agriculture (IITA).
What’s next
Billboxx plans to expand across Africa and launch a new feature to connect SMEs with market opportunities within corporate ecosystems. Details about the feature are yet to be disclosed.
Source: TechCabal
Source:
techlabari.com
Source link
