Online savings platform, Piggybank, has announced that it has secured seed funding worth $1.1 million. The Nigerian fintech company announced this in a press release made available to the media on Thursday.
The lead investor is reported to be LeadPath, a local seed capital fund which helps small and mid sized startups with the finance they need to scale. LeadPath is said to have staked $1 million on Piggybank. The other investors are Village Capital, a US based startup funder; and Ventures Platform, a pan African venture capital firm. They each pledged $50,000.
Piggybank provides a secure savings option for Nigerians by leveraging technology and deep knowledge of the country’s finance space. Its target market is Nigeria’s largely tech savvy and income earning millenial population, but it does cater to working people on other age categories as well. Since its founding in 2016, it has grown its user base to over 53,000 people; many of them have been attracted by the returns of up to 10% on savings which the platform promises.
Joshua Chibueze, cofounder and CMO of Piggybank says that the new stream of finance will allow the startup make deeper forays into the market for savings.
“Our growth so far has been stimulated almost totally by peer-to-peer advocacy and our investment in the highest quality customer service,” he explained in the statement released by Piggybank. “With this fundraiser, we can invest significantly in our people and products, as we build a digital financial warehouse accessible to millions of Africans whose savings woes we want to put firmly behind them.”
Olumide Soyombo, cofounder of LeadPath, also pointed at Piggybank’s organic growth in two years, and described the startup as “a leading example of how Africans are innovating to solve African problems,” especially in the absence of access to credit.
The Piggybank team say they will be channeling the investment into developing their services and getting licensed by authorities.
They are expected to launch Smart Target, a group savings tool, in June 2018. It’s desined to help groups of people save their money in a secure system. Smart Target is styled as a tech enabled, higher returns alternative to traditional Esusu group savings.
Piggybank has also obtained a microfinancing license from the Central Bank of Nigeria (CBN). This allows it to identify as a company regulated by relevant financial authorities, and lets it opetate independent of bank partnerships.
Odunayo Eweniyi, Piggybank’s Chief Operating Officer, has been quoted as saying that the startup aims to become more than just a savings platform.
The plan is to build “a holistic platform, a financial warehouse where other financial service providers can plug in their services for Piggybank users.”