Nigerian fintech raises $13 million seed fund for regional expansion

Nigerian fintech startup, NowNow Digital Systems, has raised $13 million in seed funding to improve financial inclusion in Nigeria and across Africa. It will provide financial services to the unbanked and under-served in the continent.

The funding move, led by NeoVision Ventures Ltd, DLF Family Office and Shadi Abdulhadi, heralds NowNow’s plans to scale and expand its service offerings across the continent.

According to the company, the newly secured funds will drive financial empowerment as well as help introduce new products, which will further enhance its already existing consumer banking, agency banking, and merchant payment solutions.

Equipped with a rapidly growing product suite and highly agile technology platform, the firm seeks to build the world’s best technology that digitises cash payments for Africans.

The company’s Chief Executive Officer and Co-founder, Sahir Berry, said the firm has moved to the next stage of its commitment to driving financial access and empowerment for Africans.

“With the secured funding, we look to not only provide services that include everyone financially but also upscale our agile ecosystem which ensures that our multidimensional offering remains a market leader.

He said the credit facility would also support its strategy to advance financial inclusion and independence through financial education.

“The interest and backing of our investors will enable us to grow our world-class team as we would be unveiling innovative products and services.”

A financial literacy report from the Central Bank of Nigeria (CBN) showed that most Nigerians want training and information on financial concepts such as long-term financial planning, budgeting, financial products and services, risk management, the financial security of their dependents, and insurance.

While the CBN’s report reveals that there is genuine interest in financial literacy, it also indicated a significant knowledge gap.

To this effect, the firm said the proceeds from the seeding facility will be deployed in improving Africa’s financial inclusivity and help to bridge the gap between the banked and unbanked in Nigeria.

Managing Partner of Capital V Ltd, Gary Peters said: “One of the key elements that propelled us to invest in NowNow through one of our funds is based on the founders’ tenacity to grow the company to a viable level, as well as overcoming many challenges and market cycles since its inception in 2018. Its core business and vision of digitizing the African region through facilitating daily payment services is also another important element.

“Whenever we meet a company founder like Sahir Berry, whose leadership’s vision aligns with Capital V’s fund of funds strategy to back disruptive and high-potential start-ups, especially in emerging markets like Africa, the decision process becomes easier,” he said.