The Nigerian-based financial management mobile app, Kippa, has joined the list of start-ups to secure funds to bolster its operations. The pre-seed fundraising was led by several venture capital investment companies and other angel investors had assisted Kippa with $3.2M worth of funds to bolster its digital finance management solutions.
Kippa management solutions focus on monitoring the flow of business expenses and income which determines how a business is handled overtime. Kippa is built as a dedicated bookkeeping service for infant businesses to generate invoices, receipts and control a business inventory as well.
Kippa’s flagship feature helps its users to monitor debtors and creditors — businesses are expected to recover debts with ease, as the Kippa algorithm is programmed to alert debtors accordingly.
Kippa’s chief executive officer, Kennedy Ekezie, confirms the $3.2M pre-seed fund will help create awareness to potential merchants and businesses introducing credit and other financial services to a targeted audience. Ekezihe’s comment revealed most businesses run their operations by cash and “40% of cash sales are made on credit. Still, merchants and other infant businesses are yet to accredit digital bookkeeping tools as a norm.
Aside from financial management as a service, Ekezie revealed Kippa will help merchants and businesses to “accept online digital payments, to provide them with working capital, digital savings and plug them into the financial ecosystem.” With the $3.2M aside, Kippa revenue generation will be focused on interest rates from its lending business which poses as another flagship business by Kippa.
The finance management company will generate more revenue with a commission fee from each successful transaction. The rest of Kippa’s financial B2B service will be available for free, endorsed by the $3.2M pre-seed they recently raised three major venture capital investors, including Rally Cap Ventures, Target Global, Entrée Capital, and Alter Global.
Despite Target Global being a Berlin-based venture capital investor that led Kippa’s pre-seed fundraising, It becomes encouraging as another African-based startup, such as Kuda Bank, invested in Kippa as an Angel investor. Other angel investors include Goodwater Capital and Auxmoney provided funds for Kippa’s pre-seed fundraising.
Kippa is in the frontline of fintech platforms in Nigeria and beyond Africa — B2B digital bookkeeping for merchants and businesses that used the conventional way to record financial transactions. Digital bookkeeping is a major development for Kippa as well as the African digital ecosystem as the financial management app is programmed with broad financial algorithms.
