Kippa, a Nigerian fintech startup, has raised $8.4 million in an oversubscribed seed round, fueling its ambition to make it simple for anyone in Africa to start and run profitable small businesses.
The startup received funding from Goodwater Capital, TEN13 VC, Rocketship VC, Saison Capital, Crestone VC, VentureSouq, Horizon Partners, and Vibe Capital
Kippa began as a finance management app in June 2021, allowing small business owners to keep track of their daily income and expense transactions, create invoices and receipts, manage inventory, and generally monitor how their businesses perform over time.
Today, the company’s services have expanded to include a wide range of financial services that enable small-business owners to legally incorporate their companies, open bank accounts, receive and send payments, build online web stores, and manage their entire business from a single platform.
Most merchants in Nigeria still operate offline. Shopkeepers have to face time-consuming and error-prone manual processes in everything from money management to inventory, business records, staff, and suppliers.
“We expect the number of digitally active small businesses to grow exponentially over the next three to five years. As more small businesses come online, Kippa will own the money button on the devices of these merchants, says Kippa CEO Kennedy Ekezie-Joseph.
Last week. Kippa received a Super-Agent banking license from the Central Bank of Nigeria. “We have over 500,000 merchants on our app and there’s a lot of opportunities for us to do more for them and provide more financial services,” said Ekezie-Joseph after receiving the license.
According to Ekezie-Joseph, the super agent license will enable merchants and typical neighborhood shops that already use Kippa’s bookkeeping app to become a one-stop shop for essential financial services such as cash withdrawals and deposits, bank account opening, bill and utility payments, and insurance.
Target Global, a Berlin-based venture capital firm, led the $3.2 million pre-seed funding round in November. Since the pre-seed round, the company has made significant progress in recruiting ex-regulators and former senior executives from top startups such as OPay, BharatPe, Khatabook, TeamApt, OKCredit, NIBSS, and Unified Payments.
Furthermore, Kippa has raised over $11 million in its first full year of operation.