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Automated savings platform Piggybank.ng‘s latest round of $1.1-million seed funding will allow the Nigerian startup to “expand and capitalise on the many opportunities that the market presents”, says co-founder Joshua Chibueze.
Chibueze (pictured above far right, with co-founders Somto Ifezue left, and Odunayo Eweniyi, middle) was commenting on the deal in a press release yesterday (31 May).
It follows the $50 000 seed funding that the startup, which targets low-income Nigerian millennials and was founded in 2016, received in May last year from Village Capital.
The three plan to use the new investment for license acquisition, product development and marketing.
“With this fund raise, 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,” commented Chibueze.
Piggybank.ng will use the seed funding for license acquisition, product development and marketing
LeadPath Nigeria’s Soyombo said the savings startup 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?” he said.
Over the last year the company — which helps its 53 000 users, known as Piggybankers, save about $55 per month — claims it has recorded between 20% to 35% growth in users.
Piggybank.ng’s platform is free to anyone and users can save from $1 a day. Users get to restrict withdrawals until an agreed date. Alternatively, users can withdraw their savings on a quarterly basis, whereby savings drawn outside of the agreed day attract a five percent early withdrawal fee.
Savers can expect to earn on average six percent per annum on automated savings or 10.95% per annum on the fixed deposit product, Safelock where they can withdraw funds once per quarter.
Featured image (from left to right): Piggybank.ng founders Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze (Supplied)