Cash flow challenges continue to stifle growth for small and medium-sized enterprises (SMBs) in Africa, where businesses often face lengthy payment cycles and limited access to credit. Addressing these issues, a Ghana-based financial technology company has secured $17 million in funding to expand its offerings and footprint across the continent.This seed round consists of $7 million in equity funding and $10 million in debt financing. The equity portion was co-led by prominent investors, including Tiger Global and JAM Fund, while Cauris provided the debt funding. Additional participants included Kinfolk, Soma Capital, Ingressive Capital, Magic Fund, and angel investors such as Michael Seibel, Sandy Kory, and founders of notable startups like Ramp and Dutchie.
A Mission to Empower African SMBs
The startup, co-founded in 2020, initially operated under a different name before launching its current platform in mid-2021. It provides flexible credit lines to businesses and offers a suite of tools to manage payments, invoices, and financial accounts. The platform aims to serve as an all-encompassing financial operating system for African SMBs.According to the co-founder and CEO, the company’s journey was inspired by firsthand experiences with the inefficiencies of traditional financial systems. The need for reliable credit and operational flexibility became the driving force behind creating a solution designed specifically for underserved businesses in Africa.
We’re focused on addressing the unique credit needs of businesses across various industries, from retail and services to agriculture and pharmaceuticals,” the CEO shared.
Features Tailored for African Businesses
The platform offers businesses a variety of credit options, including cash advances on invoices, instant payouts, and short-term working capital. These services are supported by a dashboard that integrates vendor payments, invoicing, payment links, spend cards, and more. Recent additions like revenue advances are designed to empower businesses to access their earnings without waiting for lengthy settlement periods.
Since its launch, the platform has onboarded hundreds of businesses across sectors such as retail, manufacturing, e-commerce, and health. It has processed tens of millions in payment transactions and extended significant credit to its users.
Ambitious Plans for Expansion
Currently operating in Ghana and Nigeria, the company plans to extend its reach to Kenya and South Africa by mid-2024. The funds raised will also be channeled into refining its technology and rolling out credit products tailored to the specific needs of various industries.
“Our vision is to provide African businesses with the cash flow solutions they need to thrive. This funding will enable us to support our customers better while expanding our presence across the continent,” the CEO stated.
A Growing Market for Business-Focused Fintech
The rise of platforms targeting SMBs in Africa underscores the immense demand for financial and operational support in the region. While the market sees entrants offering diverse solutions, this company differentiates itself by focusing on flexibility, speed, and tailored offerings that address the pain points of businesses directly.
With plans to scale its operations and introduce new products, the fintech aims to reshape how African businesses manage cash flow and access credit, ultimately empowering them to achieve their full potential.
