In its pre-seed investment round, Nigerian firm, Billboxx, which assists SMEs in resolving cash flow issues, raised $1.6 million. Several sites revealed this on Wednesday to BrandSpur local news desk.
The company plans to use the money to expand and broaden its range of offerings. Leading the loan and equity round was Norrsken Accelerator, with Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures also participating. Invoice financing for small and medium-sized enterprises is offered by Billboxx. This aids them in filling any gaps in cash flow that can arise before customers pay for goods or services.
In nations like Nigeria, cash flow issues are a big worry for SMEs and a major contributor to business failure. Billboxx exclusively makes payments to user SMEs with the consent of their enterprise clients. A 1.5% transaction fee is collected by the startup for payments made through its platform, and a 5% fee is collected for invoice financing. It asserts that there haven’t been any defaults so far.
Abdulazzez Ogunjobi and Justinus Obaoye founded Billboxx in 2023 as Co-founders. Their team claims that since launching their MVP a year and a half ago, they have enabled invoice payments totaling more than $4 million.
Payments to businesses using cards, bank transfers, and other financing methods are supported by Billboxx because of its relationships and integrations with banks and payment gateways. Both Obaoye and Ogunjobi have prior startup experience, having co-founded Fixit45 and Charistouch.
They have also collaborated with several major corporations, such as Schlumberger and Uber. Due to the magnitude of the market that Billboxx serves and the strength of its leadership, investors claim to have supported the company.
As stated by 54 Collective CEO, Bongani Sithole, one of the investors in Billboxx’s pre-seed fundraising round: “We invested in the company due to the large market size of the opportunity, impressive early traction gained from strong early partnerships with notable large corporates and startups, as well as the solid tech product the team has developed.”
