Prospa raises $ 3.8 million to expand banking services and software

By Sodeinde Temidayo David

Nigerian fintech startup Prospa has secured a total of $ 3.8 million in pre-seed funding to deliver banking and software services to small businesses.

This was done after the decision to combine the two worlds of banking and business management tools for micro and small businesses.

The cycle has been led by investors who include venture capitalists like Founders Capital and Liquid 2 Ventures. Global fintech founders like Immad Akhund of Mercury, Karim Atiyeh of Ramp and executives from Teachable, Square, Facebook and Nubank also participated in the round.

Founded by Mr. Frederik Obasi, Ms. Chioma Ugo and Mr. Rodney Jackson-Cole in 2019, Prospa was unveiled as a serial entrepreneur running companies in the technology and media fields.

In recent months, the company has been recognized as one of the 10 African startups that entered the Y Combinator winter batch and since its launch, the company has quietly acquired customers even when they entered the Y Combinator. .

Designed to meet the banking and software needs of small business owners, Prospa focuses on freelancers and entrepreneurs, including small business owners, acting as the operating system for their businesses.

In addition to providing banking services, Prospa offers billing tools, inventory management, employee and supplier management, an e-commerce store, and payroll functionality.

Companies registered on the platform have access to an account number and other features provided by Prospa.

For unregistered businesses, Prospa supports them in the process of formalizing their business and providing bank accounts. However, in the magnificent structure of things, this segment is more of a foray into an upsell.

Speaking of traction, Obasi revealed that the company has tens of thousands of businesses and is growing 35% month over month.

And from a non-banking perspective, Prospa has managed over 150,000 product catalogs while small businesses have sent 360,000 invoices to the platform.

According to the boss of the firm, Prospa is more software than banking and should not be confused with a neo-bank.

Prospa plans to use its new capital to double and grow with acquisition strategies to get more customers. On top of that, the company plans to hire more talent, especially in products and engineering.


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