Nigerian fintech Billboxx, focused on solving invoicing and cash flow challenges for Small and Medium Enterprises (SMEs), has raised a $1.6 million pre-seed funding round. The funds, a combination of debt and equity, will be used to scale operations, hire new talent, and expand product features.
Funding Details
The round attracted investments from prominent backers, including:
- Norrsken Accelerator
- Kaleo Ventures
- 54 Collective
- P2Vest
- Afrinovation Ventures
Founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx is tackling the chronic cash flow issues SMEs face due to delayed payments from enterprise partners.
Core Offerings
Billboxx provides invoice financing, enabling SMEs to receive advance payments for invoices before their enterprise customers settle them. This service is vital for businesses dealing with long payment cycles.
Key Features:
- Invoice Financing Fees: Up to 5%.
- Transaction Fees: 1.5% for payments processed on the platform.
- Business Banking Services: Tools for SMEs to manage their finances effectively.
The startup claims it processes over ₦1 billion monthly in transactions and has no defaults to date.
“Every business we interacted with had billing inefficiencies and cash flow problems,” said co-founder Justus Obaoye. “Some still do invoices manually or with Excel sheets.”
Unique Distribution Model
Billboxx acquires SME customers by partnering with larger enterprises. Current clients include:
- Monument Distillers
- International Institute of Tropical Agriculture (IITA)
This strategy enables Billboxx to build a niche in serving small and mid-sized businesses, differentiating itself from competitors who cater to mid-market or large enterprises.
“We plan to become the financial operating system for SMEs in Africa,” Obaoye said.
Future Plans
With the new funding, Billboxx aims to:
- Expand Across Africa: Increase its footprint in the continent’s growing SME ecosystem.
- Launch New Features: Introduce tools that allow SMEs to access corporate ecosystems for new market opportunities.
While Obaoye refrained from sharing specifics, the feature is expected to deepen the startup’s value proposition for SMEs.
Outlook
Billboxx’s innovative approach to addressing SME cash flow challenges positions it to thrive in Africa’s burgeoning fintech space. By focusing on tailored solutions and leveraging strategic partnerships, the startup aims to transform how SMEs manage their finances, driving growth and efficiency in the sector.
With its ambitious goal to become Africa’s financial operating system for SMEs, Billboxx is well-poised for long-term impact and scalability.