Prospa, a YC-backed Nigerian startup offering software and financial services to entrepreneurs and micro-businesses, today announced it closed a $3.8 million pre-seed investment, which was oversubscribed by 380%. The round was backed by venture funds Global Founders Capital and Liquid 2 Ventures. Leading entrepreneurs also participated in the round including Mercury’s Immad Akhund, Ramp’s Karim Atiyeh, Teachable’s Ankur Nagpal, Todd Goldberg and Rahul Vohra’s angel investment fund, and executives from Square, Facebook and Nubank. This investment is the largest pre-seed round for a Nigerian fintech.
With the capital, Prospa plans to further accelerate customer acquisition, scale its team with a focus on product and engineering and develop its product offerings.
Launched in October 2019, Prospa already has thousands of users who pay a monthly subscription fee and is growing its user base by 35% month-over-month. Since the founding of Prospa, users have sent 360,000 invoices and logged 20,000 unique inventory items monthly on the platform.
“At Prospa, we believe that successful small businesses can foster prosperity for Nigerians everywhere. Our goal is to power every Nigerian entrepreneur so that they achieve scale. This is the opportune moment: we’re seeing a huge demand for our service,” said Frederik Obasi, Prospa Co-Founder/CEO.
“The Prospa team is building a world class product that is tailored to the needs of Nigeria’s entrepreneurs. They have executed brilliantly and we’re happy to partner with Prospa on their journey to become the OS for Nigeria’s entrepreneurs and micro-businesses,” said Don Stalter, GFC Head of North America.
“The Prospa team has developed a stellar product serving the needs of Nigeria’s entrepreneurs. Entrepreneurs are the backbone of the Nigerian economy and I am excited to support them through this investment in Prospa,” Immad Akhund, Mercury Founder/CEO.