Nigerian fintech startup, Prospa has secured a total of $3.8 million in pre-seed funding round to offer small businesses software and financial services.
This was a result of the decision to combine both worlds of banking and business management tools for entrepreneurs and micro businesses.
“At Prospa, we believe that successful small businesses can foster prosperity for Nigerians everywhere. Our goal is to power every Nigerian entrepreneur so that they achieve scale. This is the opportune moment: we’re seeing a huge demand for our service,” said Frederik Obasi, Prospa Co-Founder, CEO.
The round was led by venture capitals which include Global Founders Capital and Liquid 2 Ventures. Entrepreneurs of global fintech like Immad Akhund of Mercury, Karim Atiyeh of Ramp, Teachable’s Ankur Nagpal, Todd Goldberg and Rahul Vohra’s angel investment fund, and executives from Square, Facebook and Nubank also participated in the round.
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“The Prospa team is building a world class product that is tailored to the needs of Nigeria’s entrepreneurs. They have executed brilliantly and we are happy to partner with Prospa on their journey to become the operating systems for Nigeria’s entrepreneurs and micro-businesses,” said Don Stalter, GFC Head of North America.
Founded in October 2019, Prospa has been providing banking and software services for micro-businesses, allowing users to open a fully operational bank account quickly.
Aside from providing banking services, Prospa also offers access to invoicing tools, inventory management, employee and vendor management, an e-commerce platform, and payroll features.
Prospa already has thousands of users who pay a monthly subscription fee and is growing its user base by 35 percent monthly. Since the company’s inception, users have sent 360,000 invoices and logged 20,000 unique inventory items monthly on the platform.
With the capital, Prospa plans to further accelerate customer acquisition, scale its team with a focus on product and engineering as well as develop its product offerings.
“The Prospa team has developed a stellar product serving the needs of Nigeria’s entrepreneurs. Entrepreneurs are the backbone of the Nigerian economy and I am excited to support them through this investment in Prospa,” Immad Akhund, Mercury Founder/CEO.
