Nigerian fintech raises $13m seed fund for regional expansion | The Guardian Nigeria News
Nigerian fintech startup, NowNow Digital Systems, has raised $13 million in seed funding to improve financial inclusion in Nigeria and across Africa. It will provide financial services to the unbanked and underserved on the continent.
The funding move, led by NeoVision Ventures Ltd, DLF Family Office and Shadi Abdulhadi, heralds NowNow’s plans to scale and expand its service offering across the continent.
According to the company, the newly secured funds will drive financial strengthening as well as help introduce new products, which will further enhance its already existing consumer banking, agency banking and merchant payment solutions.
Equipped with a rapidly growing product suite and highly agile technology platform, the firm seeks to build the world’s best technology that digitizes cash payments for Africans.
The company’s CEO and co-founder, Sahir Berry, said the firm has moved on to the next phase of its commitment to drive financial access and empowerment for Africans.
“With the funding secured, we are looking to not only provide financially inclusive services, but also scale up our agile ecosystem ensuring our multi-dimensional offering remains the market leader.
He said the credit facility would also support the strategy of promoting financial inclusion and independence through financial education.
“The interest and support from our investors will enable us to expand our world-class team as we will unveil innovative products and services.”
A financial literacy report by the Central Bank of Nigeria (CBN) showed that most Nigerians want training and information on financial concepts such as long-term financial planning, budgeting, financial products and services, risk management, the financial security of their dependents, and insurance.
While the CBN’s report reveals that there is genuine interest in financial literacy, it also indicated a significant knowledge gap.
To this end, the firm said proceeds from the seeding facility will be used to improve Africa’s financial inclusion and help bridge the gap between banks and the unbanked in Nigeria.
Managing Partner of Capital V Ltd, Gary Peters said: “One of the key elements that led us to invest in NowNow through one of our funds is based on the tenacity of the founders to grow the company to a viable level, as well as overcoming many challenges and market cycles since its inception in 2018. Its core business and vision to digitize the African region by facilitating everyday payment services is also another important element.
“When we meet a company founder like Sahir Berry, whose leadership vision is in line with Capital V’s fund-of-funds strategy to support disruptive start-ups with high potential, especially in emerging markets like Africa, the decision-making process becomes easier,” he said.
