Payhippo, a fintech startup based in Nigeria, has completed a pre-seed funding round, raising US$1 million to expand its operations, especially providing financing options to SMEs across Africa’s largest economy.
Some of the participants of this funding round include DFS Lab, Future Africa, Hustle Fund, Launch Africa, Mercy Corps Ventures, Sherpa Ventures, and Ventures Platform.
Payhippo, which was founded in January 2020 by Chioma Okotcha, Uche Nnadi, and Zach Bijesse, is a platform through which small businesses in Nigeria and across the continent can access the funds they need very badly but cannot get from traditional lenders.
The firm’s process is also fast enough to let applicants know whether or not their loans are approved three hours after they register their request.
As of today, the firm boasts of 2,600 loans to SMEs and a 97% compliance or repayment rate.
After launching off of a family and friends fundraising effort, venture capital firm Aidi Ventures saw potential in Payhippo’s model and decided to back it. With the newly acquired funds and backers, the firm can scale its operation and expand its range of offerings.
“Payhippo’s execution has been phenomenal and we are excited to support the impact they will create across the chronically underserved SME funding landscape in the coming years,” said Kola Aina, a senior exec at Ventures Platform Fund.
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