Nigeria’s fintech company, Piggybank, an online and mobile app savings platform has introduced a new product – Smart Target – which is modelled on the age-long West African tradition of ‘ajo or esusu’ to leverage the power of communal savings and harness the network effect of accountability.
SmartTarget is a group savings tool that can be scaled from family-size to large corporations, based on the age-long West African tradition of savings (ajo or esusu).
The company, in a statement made available to newsmen on Thursday, May 31, 2018, said the saving platform will be available from June 2018.
The online saving platform also secured a seed funding of $1.1 million for license acquisition and product development led by Olumide Soyombo, Founder of LeadPath Nigeria, with participation from international and pan-African investors Village Capital and Ventures Platform.
Founded in 2016 by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze, graduates of Covenant University, Nigeria, Piggybank.ng is positioned to fill a void for tens of millions of Nigerians, who have no access to credit, in a country where up to two years’ rent is often required upfront to secure a home.
Odunayo Eweniyi, Co-Founder and COO of Piggybank says: “In a country such as Nigeria, almost everything has to be paid in advance. The majority of Nigerians struggle to save their income, manage cash flow and build credit, which is a huge problem as around 80% of Nigerians need to save a minimum of 40% of their monthly income, in order to survive. This is the sheer scale of the challenge we are embracing; to actively promote a savings culture in Nigeria and act as the savings infrastructure to millions of people who want a safe, transparent and innovative platform to assist them in managing their finances, on their journeys to financial freedom.”
Having completed accelerator programs with Blackbox, the CcHub’s Pitch Drive, powered by Google for Entrepreneurs, and Google Launchpad Africa, Piggybank said it has built a savings community of over 53,000 registered users of which approximately 60% are Nigerian millennials, who have saved in excess of $5 million, with a savings growth of 3000% between 2016-17.
Joshua Chibueze, Co-Founder and CMO of Piggybank continues: “Today’s announcement allows us to expand and capitalise on the many opportunities that the market presents us with. Our growth so far has been stimulated almost entirely by peer-to-peer advocacy and our investment in the highest quality customer service, so we know the market is there, and the product has been built, modified, tested and ratified by users….”
Olumide Soyombo, Co-Founder Leadpath adds: “Piggybank.ng is a leading example of how Africans are innovating to solve African problems.
“…I’m excited to have led other local angel investors this investment round, and to now work closely with the team to grow the platform”
In addition to securing its Seed Funding of $1.1M, Piggybank said it has acquired a micro-financing license from the Central Bank of Nigeria (CBN), which provides the relevant regulatory cover, allowing them independence from partnering with banks.
Piggy Bank saved N1 billion in 2017 while increasing its users of 60% millennials on the platform by 3000% between 2016 and 2017.
The Nigerian startup listed these feats in its 2017 financial statement concerning about its annual progress.
