Millions of small businesses globally, especially in emerging markets, have stayed offline for the better part of the past decade. Due to that, most of them still rely on scribbles using pen and paper or ledgers for bookkeeping and storing important information.
In Nigeria, some go to the extent of keeping information offhand. All these inefficiencies, asides from being time-consuming, lead to errors and affects cash flow and finance, which is why almost nine out of 10 small businesses in the country fizzle out in the first five years.
Nigerian startup Kippa, attempting to improve the life cycle of these small businesses with its finance management app, has raised $3.2 million in pre-seed funding.
The startup’s new financing round was led by Berlin-based VC Target Global. Entrée Capital, Alter Global and Rally Cap Ventures are the other participating VCs.
A number of angel investors — Babs Ogundeyi, Kuda CEO; Sriram Krishnan, an investor in Khatabook; Raffael Johnen, Auxmoney CEO; Chris Bouwer; Kyane Kassiri; Edward Suh of Goodwater Capital; and Sajid Rahman — invested in the startup.