Flutterwave Invests Substantially in PiggyVest

Flutterwave, the continent’s leading payments company, has invested in Piggytech, the parent company of PiggyVest, a Nigerian fintech renowned for revolutionising saving habits. The undisclosed investment, structured as a SAFE (Simple Agreement for Future Equity), signifies Flutterwave’s commitment to bolstering PiggyVest’s growth trajectory through a promising partnership.

While the specific terms of the deal remain confidential, sources familiar with the matter estimate Flutterwave’s investment in PiggyVest at $3 million. This infusion of capital marks a significant milestone for PiggyVest, which, until now, had only disclosed $1.1 million in venture funding. Notably, PiggyVest has amassed a total of $5 million in venture funding since its inception in 2016, a detail previously undisclosed to the public.

The collaboration between Flutterwave and PiggyVest comes at a pivotal moment for the latter, as it endeavours to secure additional external funding amidst a challenging fundraising landscape exacerbated by valuation disagreements and global economic uncertainties. Flutterwave’s investment not only provides vital financial support but also fosters a deeper relationship between the two companies, enabling PiggyVest to navigate its investment round with renewed confidence.

PiggyVest’s journey towards sustainable growth has been marked by strategic partnerships and consistent profitability. Despite facing hurdles in the fundraising arena, the fintech giant has maintained steady progress, with reported annual revenues of approximately $25 million in 2021 and a slight uptick to $27 million in 2022. These figures, previously undisclosed, underscore PiggyVest’s resilience and enduring appeal within the fintech ecosystem.

Founded in 2016, PiggyVest has emerged as a beacon of financial empowerment, offering a user-friendly platform for young Nigerians to cultivate saving habits and enhance financial literacy. The platform’s innovative approach allows users to deposit funds and earn interest while imposing limitations on withdrawals to instil discipline. To date, PiggyVest has disbursed over ₦1.1 trillion ($1.37 billion) to customers, with a staggering ₦400 billion ($497.3 million) distributed in 2023 alone.

While initially focused on deposit-holding services, PiggyVest has evolved into a multifaceted holding company, PiggyTech Global Holdings Limited, operating across various verticals. The company’s portfolio includes PiggyVest, the flagship wealth management app, as well as Pocket, a consumer payments app, and Patronize, a point-of-sale solution catering to retail establishments. Notably, PiggyVest’s recent acquisition of a fund manager license from the Securities and Exchange Commission (SEC) underscores its commitment to expanding its financial offerings and regulatory compliance.

As PiggyVest continues to innovate and expand its footprint, Flutterwave’s strategic investment reaffirms the fintech’s position as a trailblazer in Africa’s burgeoning digital finance landscape. With a shared vision for financial inclusion and technological innovation, the partnership between Flutterwave and PiggyVest holds immense promise for driving socioeconomic empowerment across the continent.