Benefiting from the CBN’s efforts to regulate fintech in order to sustain growth in Nigeria’s payment system, Piggybank was founded in 2016 to assist Nigerian debit cardholders to save little amount of money frequently with little to no stress. The informal savings group is an online based investment startup that offers online savings plans to low and middle income Nigerians through deposits of small amounts on a daily, weekly, monthly, or annual basis. Asides the perk that there’s no upfront fees, savers can also earn interest rates of between 6 to 10 percent, depending on the type and duration of investment.
Piggybank just closed $1.1Millon in seed funding while announcing their new product, Smart Target. The financing was led with a $1 million commitment from LeadPath Nigeria while Village Capital and Ventures Platform contributed $50,000 each. The float adds to the revenue they normally generate through asset management.
They also announced a new product, “Smart Target”, which offers a more secure and higher return option for Esusu or Ajo group savings clubs common across West Africa.
The chief operating officer for the online based savings platform was quoted saying “The market that we are trying to serve is largely the millennial market, though we do not exclude anyone”. Looking to meet the demand in Nigeria for accessible investment options, the company mentioned the possibility of also serving banks, investment houses, insurance, and pension funds. But as it stands, the company currently has 53,000 registered users with a large majority being Nigerian Millennials who have saved in excess of $5M since 2016 according to a released statement.
PiggyBank.ng will use its $1.1Million in new seed funding for “license acquisition and product development”
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