A Nigerian fintech start-up providing banking and financial management solutions, Prospa, has closed a $3.8 million pre-seed round.
Prospa was founded by Frederik Obasi, Chioma Ugo and Rodney Jackson-Cole in 2019 to solve the needs of small business owners in banking and software.
According to TechCrunch, the investors in the round include Venture Capitals like Global Founders Capital and Liquid 2 Ventures.
Founders of global fintechs like Mercury’s Immad Akhund, Karim Atiyeh of Ramp, and executives from Teachable, Square, Facebook and Nubank also participated in the pre-seed round.
In March, the company was one of the 10 African startups that participated in the Y Combinator’s accelerator programme.
A few months past graduation, the startup, combining both worlds of banking and business management tools for micro and small businesses, has closed a $3.8 million pre-seed round.
Obasi said the company will use the fund to double down and expand with acquisition strategies to get more customers.
According to him, the company plans to hire more talent, especially in product and engineering.
“We like to think a really long-term game. We really wanted to really test the hypotheses, build an actual business with revenue and understand what we were doing. Then the COVID period came and we started seeing enough traction,” he added.
“Banking is just a little part of what we do. We know we’re put into the neobank category, but we see our product as 10 percent banking and 90 percent software. So the experience is very much different from what you’d get from a neobank and the use case for Prospa users is quite different,” he added.
He added that Prospa focuses on freelancers and entrepreneurs, acting as the operating system for their businesses.