Kippa Raises $3.2 Million In A Pre-seed Fund To Accelerate The Lifecycle Of SMEs
Kippa raises $3.2 million in a pre-seed fund to accelerate the lifecycle of SMEs
In order to help small businesses succeed, Kippa, a Nigerian company that uses money management software, has raised $3.2 million in pre-seed capital.
Target Global, a venture capital firm based in Berlin, was the lead investor in the startup's most recent funding round. Entrée Capital, Alter Global, and Rally Cap Ventures were among the other investors who took part in the event.
Sajid Rahman was among the angel investors who contributed to the firm. Others included Babs Ogundeyi, the CEO of Kuda; Sriram Krishnan, an investor in Khatabook; Raffael Johnen of Auxmoney; Chris Bouwer of Auxmoney; Kyan Kassiri of Auxmoney; Edward Suh of Goodwater Capital; and Sajid Rahman.
Intuitively designed, Kippa allows small business owners to keep track of their daily revenue and spending transactions, create invoices and receipts, manage inventory, and track the growth of their businesses over time.
As stated by the company, one of the most important features of the software is its ability to assist merchants in tracking down debtors and sending them automated reminders. Businesses that use Kippa in this manner "recover debts three times faster," according to the company.
$300m in sales in less than 5 months
Kippa was founded in February 2021 by CEO Kennedy Ekezie and co-founders Duke Ekezie and Jephthah Uche, with the help of other investors. In the years before launching their own company, the three co-founded Africave, a software talent matchmaking platform that was acquired by LinkedIn in 2014.
According to Ekezie, they left Africave when they realized that the company's expansion would be hampered by looming supply constraints if they stayed.
Kippa reports that its accounting and financial software has grown at an average monthly rate of 126 percent since the company's founding in June of this year.
The company also claims to have generated over $300 million in sales over the course of the last five months, with the app being used by more than 130,000 businesses ranging from small kiosks and street corner stores to high-end retailers.
According to CEO Ekezie, the company distinguishes itself from competitors by "choosing to be digitally native" rather than pursuing the digitalization of analogue processes, as competitors had done in the previous years.
According to the platform's developers, "the majority of the platform's other features are geared toward attracting a diverse range of Nigerian businesses." They will, however, be eligible for loans and other financial services, if they meet certain criteria."
In the meantime, businesses can use Kippa for free; however, once credit and other financial services are made available, the company will be able to generate revenue by charging commissions on loans or interest on working capital.
Based on financial results reported by the company's lead investor Target Global, Kippa has demonstrated a positive financial performance and there is a significant market need for the product in Nigeria.
