Piggybank.ng, a startup from Nigeria that has developed an online and mobile app savings platform targeted at Afrikan millennials, has concluded its Seed funding round of $1,1 million. The seed funding round is said to have been led by Olumide Soyombo, Founder of LeadPath Nigeria, and with participation from International and other Afrikan investors Village Capital and Ventures Platform.
Piggybank.ng was founded by by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze in 2016.
“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% of Nigerians need to save a minimum of 40% of their monthly income, in order to survive. 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,” said Odunayo Eweniyi, Co-Founder and COO of Piggybank.ng
According to the startup, they will be using the funds raised in the seed round for license acquisition and product development. Piggybank.ng also reports that it has so far recorded 20 - 35% month on month growth in user traction over the past 12 months; primarily from peer-to-peer recommendations, its referral program - Piggybank Stories, and grass-roots social media campaigns.
“Piggybank.ng is a leading example of how Africans are innovating to solve African problems. In this case, the team is applying technology and innovation to solve a problem facing millions of Nigerians; how can they accrue enough money to make down-payments on so many ‘life events’, in a market where there’s little to no access to credit? Led by a solid and experienced executive team, who have recorded significant growth after two years of bootstrapping, and have built a product that is ready to scale, I’m excited to have led other local angel investors this investment round, and to now work closely with the team to grow the platform,” said Olumide Soyombo, Co-Founder Leadpath.