Afrigather Pivo, the Nigerian fintech that supplied banking companies to small provide chain companies, is shutting down one 12 months after elevating a $2 million seed spherical.
Pivo, the Nigerian fintech startup that raised greater than $2.6 million from Y Combinator, Ventures Platform, Mercy Corp Ventures, and over 15 different traders, is shutting down. One individual with direct information of the enterprise confirmed the closure to TechCabal however didn’t present additional particulars.
“I can not present the specifics right now however might be pleased to take action later,” Amadi-Emina, the corporate’s cofounder and CEO, instructed TechCabal through WhatsApp.
Based by Nkiru Amadi-Emina (CEO) and Ijeoma Akwiwu (COO) in July 2021, the startup supplied banking companies to small logistics and haulage companies in Nigeria’s provide chain sector.
Pivo raised a $100,000 pre-seed spherical from traders like Microtraction, FirstCheck Africa, and Rally Cap Ventures two months after its launch. It later raised a $2 million seed spherical in November 2022; on the time, Amadi-Emina instructed TechCabal that the funds could be used to develop to East Africa and launch new merchandise round funds, a significant ache level for provide chain SMEs.
Amadi-Emina and Akwiwu each had vital expertise within the logistics sector earlier than founding Pivo. Amadi-Emina based Jalo, an on-demand supply firm acquired by Kobo360 in August 2018. When she and Akwiwu began Pivo, they’d no competitors within the provide chain sector.
Pivo’s market strategy
Pivo needed to unravel the liquidity drawback in Africa’s provide chain by offering financing choices for provide chain companies like logistics service suppliers, clearing and forwarding companies, and FMCG distributors. Provide chain financing in Africa was estimated to be value $41 billion last year.
The startup had two fintech verticals: Pivo Capital, a lending product, and Pivo Enterprise, a enterprise banking product. The corporate claimed to have disbursed greater than $3 million in loans a 12 months after its launch by way of Pivo Capital and processed greater than $4 million by way of Pivo Enterprise.
The startup supplied credit score to those companies, which must acquire funds from lenders to finance a transaction earlier than being paid by patrons, solely after validating with potential patrons that the offers have been legit. The startup mentioned this strategy allowed it to report a 98% compensation charge.
Pivo’s shutdown is the newest in a line of African startups which have shut down this 12 months for varied causes. Over a dozen African startups have shut down this 12 months because the financial downturn and a rising funding hole proceed to create a tough surroundings for African startups.
