The reliance on cash-based transactions in Nigeria’s B2B sector has led to inefficiencies and risks, particularly in industries like fast-moving consumer goods (FMCG). Duplo, a Lagos-based financial technology company, is addressing these challenges by digitizing payment flows for businesses, aiming to make cash transactions obsolete in critical value chains.Traditional distributors in the FMCG space often rely on agents to collect payments from retailers.
These funds are later deposited into centralized accounts, a process prone to fraud and inefficiencies due to manual reconciliation methods. With razor-thin margins in this sector, hiring accountants for such tasks isn’t always feasible, further compounding the issue.
Duplo offers a solution by enabling distributors to create virtual accounts for retailers and agents. These accounts allow real-time bank transfers and cashless payments while automating reconciliation processes. The platform accommodates various payment methods, including mobile money transactions, ensuring accessibility for all stakeholders in the value chain.
The company charges a nominal fee for transactions, with businesses paying small amounts to create virtual accounts. Beyond payments, Duplo provides tools to streamline trade, generate and manage invoices, and offer credit to business customers. A user-friendly dashboard also gives businesses clear insights into payment flows, helping to optimize operations.Since its pilot launch, Duplo has reported significant impact, with customers saving over 12% on costs within the first three months.
The platform has processed transactions exceeding $380,000 and is on track to reach $40 million in annualized payment volumes by the second quarter.
The company recently secured $1.3 million in pre-seed funding from a mix of local and international investors. The investment will be directed toward enhancing its technology and expanding into new sectors, including agriculture, travel, and B2B marketplaces.
Looking ahead, Duplo plans to broaden its scope beyond FMCG and develop APIs to automate payments for various industries. The company aims to capitalize on the immense potential of Africa’s growing commerce landscape by eliminating payment complexities and driving digital transformation.
