Billboxx, a Nigerian fintech providing invoicing and money move options to Small and Medium companies (SMEs) has raised a $1.6 million pre-seed funding spherical. The corporate plans to make use of the capital to scale its operations, rent new expertise and develop product options.
The $1.6 million, a mixture of debt and fairness, was raised from Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Based in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx goals to unravel money move points confronted by SMEs that always wrestle with lengthy or delayed cost cycles from their bigger enterprise companions. Billboxx bill financing means SMEs can obtain these advance funds earlier than the purchasers pay, a vital cashflow resolution for any enterprise.
Nonetheless, clients should first obtain approval from their enterprise clients earlier than cost is accepted. BillBoxx expenses as much as 5% for bill financing and 1.5% transaction charges for funds carried out on its platform.
The corporate, which claims to course of ₦1 billion month-to-month, additionally says it has no defaults.
“We realised that each enterprise we’ve got interacted with had plenty of billing inefficiencies and money move issues. A few of them nonetheless do invoices manually or with Excel sheets,” mentioned Obaoye.
The startup, which primarily serves small to mid-sized companies (SMEs), additionally provides different enterprise banking providers to assist SMEs handle their funds extra successfully.
Billboxx claims its distinctive distribution mannequin permits it to accumulate SMEs by way of partnerships with bigger enterprises on its roster. Billboxx serves companies like Monument distillers, and the Worldwide Institute of Tropical Agriculture (IITA). Obaoye emphasises that the enterprise differentiates itself by offering an answer tailor-made to small and medium-sized companies, not like opponents who focus extra on mid-market to enterprise companies.
“We plan to change into the monetary working system for SMEs in Africa,” Obaoye mentioned.
Billboxx plans to develop throughout Africa and can launch a brand new function that may permit SMEs entry new market alternatives inside company ecosystems. Obaoye didn’t share additional details about the function.