Payhippo loan start-up closes $ 3 million fundraiser to improve access to finance
Credit start-up, Payhippo announced a $ 3 million start-up fundraiser. That brings the fintech startup’s total increase to $ 4 million in just four months. It raised $ 1 million pre-seed for its large-scale expansion in July.
The cycle was led by influential African fintech founders and financial leaders Ham Serunjogi and Maijid Moujaled, co-founders of Chipper Cash.
Other investors include Olugbenga “GB” Agboola, founder Flutterwave, Bolaji Balogun, CEO Chapel Hill Denham and Hakeem Belo-Osagie, founder of Metis Capital Partners. Other angel investors include the management of Paystack, Brex and Tala and several LPs of Payhippo’s pre-seed investors. Institutional investors include TEN13, VentureSouq and Prodigio Capital.
Payhippo participated in the Y Combinator Summer 2021 cohort. The startup was founded in August 2019 by three co-founders, Zach Bijesse, CEO, Chioma Okotcha, COO, and Uche Nnadi, Technical director. It allows small businesses to access credit in less than three hours; with instant financing, business owners can make the investments necessary for growth.
Having worked in fintech and lending organizations in Nigeria, the team had a vision to create an innovative lending product for small businesses in Africa.
Chioma Okotcha, Co-Founder and COO, Payhippo, said:
“The funding will allow us to invest in hiring more engineers and data scientists. We aim to improve our technology and loan offerings while continuing to close the persistent financing gap for small businesses in Nigeria. At Payhippo, our vision is to provide millions of small businesses with sufficient and available capital to manage and grow their businesses. “
Payhippo promotes financial inclusion for small businesses by creating accessibility to finance. A business can apply for a loan through the company’s online platform by providing its business information. Through its backend technology system, the company uses KYC checks to verify company treasury data, business owner data, and industry data – all within minutes.
Payhippo provides small businesses with short-term working capital with average loans of $ 1,300 and allows them to use the principal amount for the duration, using the money to fully run their business.
The companies then repay the entire loan at the end of the loan period. Small businesses can then build their Payhippo score based on their track record – by paying off their loans on time, they become eligible for higher amounts of capital.
To date, Payhippo has disbursed 5,000 loans to small businesses across Nigeria. In September 2021, the company generated $ 64,000 in revenue on $ 900,000 disbursed, experiencing monthly growth of 25% with a repayment rate of 97% on loans.
One of the main investors, Bolaji Balogun, Founder and CEO of Chapel Hill Denham said:
“We are excited about the way Payhippo is using technology to provide SMEs in Africa with access to the finance necessary to meet their business needs. By lending to small businesses, Payhippo provides business owners with access to the working capital they need to grow their businesses and create much-needed jobs in the economy.
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