The Nigerian fintech space is alive and kicking as the majority of people are moving away from traditional banking in favour of fintech platforms. The majority of micro-businesses are underserved by banking institutions and data is not available for these businesses to make smart decision.
Fintech startup stick their neck out to change the status quo and started to tap into that market and service these businesses. The company close a pre-seed round of $3.8 million to scale its business offering and services.
The cash injection comes after the company took part at Y Combinator. Prospa is one of graduated startup, combining both worlds of banking and business management tools for micro and small businesses.
The Nigerian startup was founded by Frederik Obasi, Chioma Ugo and Rodney Jackson-Cole. As a serial entrepreneur running businesses in tech and media, Obasi experienced how tough running operations and banking his business simultaneously was in Nigeria, state TechCrunch.
“When I left my last business, I wanted to do something really big and something that I knew the problem inside out. That’s why I started Prospa,” Obasi told TechCrunch.
He adds, “we like to think a really long-term game. We really wanted to really test the hypotheses, build an actual business with revenue and understand what we were doing. Then the COVID period came and we started seeing enough traction.”
Obasi told the publications “Banking is just a little part of what we do. We know we’re put into the neobank category, but we see our product as 10% banking and 90% software. So the experience is very much different from what you’d get from a neobank and the use case for Prospa users is quite different,” he added.
TechCrunch reports, Prospa plans to use its new capital to double down and expand with acquisition strategies to get more customers. In addition to that, the company plans to hire more talent, especially in product and engineering.