Nigerian tech start-ups soar
By Prince Osuagwu
The coast of Nigerian start-ups are beginning to expand tremendously with the Information and Communications Technology sector of the economy set to gain from the expansion.
This is as more of the start-ups are attracting investor interests across the globe.
The latest to enjoy such interests is Nigeria’s Piggybank.ng, an online and mobile app savings platform targeted at African Millennials. The start-up has secured a Seed Funding of $1.1million from High Net Worth Individuals, led by Olumide Soyombo, founder of LeadPath Nigeria, and with participation from International and Pan-African investors Village Capital and Ventures Platform.
The company will deploy the VC investment for licence acquisition and product development. Piggybank.ng has recorded 20 – 35 per cent m-o-m growth in user traction over the past 12 months; primarily from peer-to-peer recommendations, its referral program – Piggybank Stories, and grassroots social media campaigns.
The startup will also invest in additional marketing spend, to accelerate its growth trajectory. Having completed accelerator programs with Blackbox, the CcHub’s Pitch Drive, powered by Google for Entrepreneurs, and Google Launchpad Africa, Piggybank.ng has built a savings community of over 53,000 registered users of which approximately 60 per cent are Nigerian Millennials, who have saved in excess of $5m, with a savings growth of 3000 per cent between 2016-17.
Founded in 2016 by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze, graduates of Covenant University, Nigeria, Piggybank.ng is positioned to fill a void for tens of millions of Nigerians, who have no access to credit, in a country where up to two years’ rent is often required upfront to secure a home.
Targeting low-middle income savers in Nigeria, of which there are 26.5m with a market size of $2.2Bn, the fintech start-up is an automated savings platform where savers manage their finances by depositing small amounts of money starting from as little as USD$1/day on a daily, weekly or monthly basis, depending on their saving target, free of charge.
Savers can expect to earn on average 6 per cent per annum on automated savings or 10.95 per cent per annum on the fixed deposit product, Safelock and can withdraw funds once per quarter.