Prospa, a Y Combinator-backed Nigerian fintech startup, has raised a $3.8 million pre-seed investment from venture funds including Global Founders Capital and Liquid 2 Ventures.
Other investors that joined the round are Mercury’s Immad Akhund, Ramp’s Karim Atiyeh, Teachable’s Ankur Nagpal, Todd Goldberg, and Rahul Vohra’s angel investment fund, and executives from Square, Facebook, and Nubank.
The fintech startup plans to use its new capital to strengthen and expand with acquisition strategies to get more customers. In addition to that, the company plans to hire more talent, especially in product and engineering.
Founded in October 2019 by Frederik Obasi, Chioma Ugo, and Rodney Jackson-Cole, the fintech startup offers software and financial services to entrepreneurs and micro-businesses and already has thousands of users who pay a monthly subscription fee and is growing its user base by 35% month-over-month.
Since then, users on the platform have sent 360,000 invoices and logged 20,000 unique inventory items monthly. With the capital, Prospa plans to further accelerate customer acquisition, scale its team focusing on product and engineering and develop its product offerings.
“At Prospa, we believe that successful small businesses can foster prosperity for Nigerians everywhere. Our goal is to power every Nigerian entrepreneur so that they achieve scale. This is the opportune moment: we’re seeing a huge demand for our service,” said Frederik Obasi, Prospa Co-Founder/CEO.
“The Prospa team is building a world-class product that is tailored to the needs of Nigeria’s entrepreneurs. They have executed brilliantly, and we’re happy to partner with Prospa on their journey to become the OS for Nigeria’s entrepreneurs and micro-businesses,” said Don Stalter, GFC Head of North America.
“The Prospa team has developed a stellar product serving the needs of Nigeria’s entrepreneurs. Entrepreneurs are the backbone of the Nigerian economy, and I am excited to support them through this investment in Prospa,” Immad Akhund, Mercury Founder/CEO.