Billboxx Raises $1.6M Pre-Seed to Revolutionize SME Cash Flow Solutions in Nigeria
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Nigerian fintech startup Billboxx has raised $1.6 million in a pre-seed funding round to scale its operations, enhance product features, and expand its team. Founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, the company aims to tackle cash flow challenges faced by small and medium-sized enterprises (SMEs) due to delayed payment cycles from larger enterprise partners.
The funding round, a combination of debt and equity, was led by Norrsken Accelerator, with participation from Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Billboxx’s primary offering is invoice financing, enabling SMEs to receive advance payments before their clients settle invoices. Customers must secure approval from their enterprise partners before payments are processed, and Billboxx charges up to 5% for invoice financing and 1.5% in transaction fees for payments handled on its platform.
The company, which claims to process ₦1 billion in transactions monthly without defaults, also provides other business banking solutions tailored to SMEs.
“We realized that every business we have interacted with had a lot of billing inefficiencies and cash flow problems. Some of them still do invoices manually or with Excel sheets,” said co-founder Obaoye.
By partnering with larger enterprises, Billboxx uses a unique distribution model to acquire SMEs as customers. It currently serves businesses such as Monument Distillers and the International Institute of Tropical Agriculture (IITA). Obaoye highlighted the company’s focus on providing tailored solutions for SMEs, distinguishing it from competitors who cater to mid-market and enterprise businesses.
Looking ahead, Billboxx plans to establish itself as the financial operating system for SMEs in Africa. The company is set to introduce a new feature designed to help SMEs access additional market opportunities within corporate ecosystems, though further details remain undisclosed.
This funding marks a significant milestone in Billboxx’s mission to empower African SMEs with innovative cash flow and financial management solutions.
Source: TechCabal
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