Funds has always been a huge problem when starting a business. However, you a business can only attract the attention of possible investors by ensuring that they have a good product, are scalable and are willing to embrace investors. The truth is any business that any of these features will definitely attract the much-needed funding.
Hence it is no surprise when a startup like Piggybank.ng announces that it has secured $1.1M seed funding led by LeadPath Nigeria with Village Capital and Ventures Platform making contributions. LeadPath Nigeria made a commitment of $1m with Village Capital and Ventures Platform contributing $50,000 each.
The startup also unveiled a new product — Smart Target, which offers a more secure and higher return option for Esusu or Ajo group savings clubs common across West Africa.
Founded in 2016 by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze, Piggybank.ng offers online savings plans — primarily to low and middle income Nigerians — for deposits of small amounts on a daily, weekly, monthly, or annual basis. There are no upfront fees.
“The market that we are trying to serve is largely the millennial market, though we do not exclude anyone,” said Eweniyi, the company’s chief operating officer. The venture also looks to meet a demand in Nigeria for accessible investment options, citing a survey they conducted indicating that as a top priority for people with discretionary income.
“Piggybank offers savings, but our vision is not just savings, but to become a holistic platform — a financial warehouse — where other financial providers can plug in their services for PiggyBank users,” said Eweniyi. She cited banks, investment houses, insurance, and pension funds as possible partners.
The company currently has 53,000 registered users — 60 percent of whom are Nigerian Millennials — who have saved in excess of $5M since 2016, according to a release.
PiggyBank.ng will use its $1.1M in new seed funding for “license acquisition and product development.” The startup has taken preliminary steps to launch in other African countries particularly Kenya
On their part, LeadPath Nigeria founder, Olumide Soyombo said that the company is in the process of acquiring a micro-finance banking license.
Soyombo will take a role on Piggybank.ng’s board and he’d like to see them open up new options for individuals to input money on the platform. “The agent network business is a huge play we plan to go into. They’ve basically become like human ATMs,” Soyombo said.