$3.2 M pre-seed funding received by Nigerian business accounting startup Kippa

Kippa, a Nigerian accounting firm, has acquired $3.2 million in pre-seed capital to help it grow its small company financial management software.

Kippa, founded in June by Kennedy and Duke Ekezie, together with Jephtah Uche, is an app that assists retailers in increasing cash flow by collecting debts.

Small company owners may use the app to keep track of debtors and issue automatic debt reminders. Merchants that use Kippa collect debts three times faster, allowing them to access key cash flow that is critical to their company’s existence. Merchants may also track their entire profit by recording sales and costs, creating invoices and receipts, managing their inventory, and recording sales and expenses.

Target Global led a US $3.2 million pre-seed fundraising round for the firm, which also included Entrée Capital, Alter Global, and Rally Cap Ventures. Sriram Krishnan (investor in Khatabook), Raffael Johnen (CEO, Auxmoney), Babs Ogundeyi (CEO, Kuda), Chris Bouwer (board member, Cellulant), Kyane Kassiri, Edward Suh (Goodwater Capital), and Sajid Rahman were among the notable angel investors that took part in the round.

Kippa plans to utilise the funds to expand its product, which now has over 130,000 active customers across Nigeria. Merchants that utilise the programme have reported over $300 million in sales in the last five months.

“Our approach is simple. We chose to be digitally native rather than pursue the digitization of analogue processes that previous players have done. The long-term vision for Kippa is clear – we are building a full-range end-to-end finance management solution for small businesses, playing across all critical layers of the SME digitisation space. Kippa is the first B2B SaaS tool most of our users have ever used and we are excited to build for this critical segment,” Kennedy Ekezie, Kippa’s CEO, said.

Kippa’s product has an obvious market need, according to Lina Chong, investment director at Target Global.

“In a very short time since launch, this incredible team has grown the merchant base to over 130,000 monthly active users, growing by 126 percent month-on-month. Our investment in Kippa will enable it to grow and be the first-choice, financial management solution for small businesses in Africa,” she said.