Piggybank.ng Secures $1.1M Seed Funding

Nigeria’s Piggybank, a platform we covered on our last Unfold series, an online and mobile app savings platform targeted at African Millennials, today announces that it has closed on Seed Funding of $1.1M, from High Net Worth Individuals, led by Olumide Soyombo, Founder of LeadPath Nigeria, and with participation from International and Pan-African investors Village Capital and Ventures Platform.

The company will deploy the VC investment for license acquisition and product development. Piggybank.ng has recorded 20 – 35% m-o-m growth in user traction over the past 12 months; primarily from peer-to-peer recommendations, its referral program – Piggybank Stories, and grassroots social media campaigns. The startup will also invest in additional marketing spend, to accelerate its growth trajectory. Having completed accelerator programs with Blackbox, the CcHub’s Pitch Drive, powered by Google for Entrepreneurs, and Google Launchpad Africa, Piggybank.ng has built a savings community of over 53,000 registered users of which approximately 60% are Nigerian Millennials, who have saved in excess of $5M, with a savings growth of 3000% between 2016-17.

Joshua Chibueze, Co-Founder, and CMO of Piggybank continues: “Today’s announcement allows us to expand and capitalise on the many opportunities that the market presents us with. Our growth so far has been stimulated almost entirely by peer-to-peer advocacy and our investment in the highest quality customer service, so we know the market is there, and the product has been built, modified, tested and ratified by users. With this fundraise, we can invest significantly in our people and products, as we build a digital financial warehouse accessible to millions of Africans whose savings woes we want to put firmly behind them.

In addition to securing its Seed Funding of $1.1M, Piggybank.ng has recently acquired a micro-financing license from the Central Bank of Nigeria [CBN], which provides the relevant regulatory cover, allowing them independence from partnering with banks.  As of June 2018, the company will also be expanding its product range to include Smart Target, a group savings tool, that can be scaled from family-size to large corporations, based on the age-long West African tradition of Ajo or Esusu to leverage the power of communal savings and harness the network effect of accountability.

A recent survey conducted by Piggybank.ng, which saw 5,000+ responses, revealed that the top 5 areas Nigerians are saving for include investments, starting a business, rent and unforeseen circumstances e.g health and vacations. Co-founder and CEO, Somto Ifezue concludes, “The research reveals that our savers are hard working, focussed, and serious about reaching their savings goals. Already, we are seeing thousands of our users reaping the benefits of addressing their financial future by weaving Piggybank.ng into their daily lives, making it a savings ritual. We’re looking forward to helping thousands more in the coming months and years reach their financial goals”.

The Piggybank.ng app is available for free download on Google Play or iTunes Store.

Reported by Oluwatosin Adeshokan.

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