A Nigerian fintech company known as Billboxx, specializing in providing invoicing and cash flow solutions to Small and Medium businesses (SMEs), has successfully secured a pre-seed funding round of $1.6 million. This funding will be utilized to expand operations, bring in new talent, and enhance product features.
The $1.6 million funding, comprising both debt and equity, was raised from Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Established in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx’s primary objective is to address the cash flow challenges encountered by SMEs, particularly those struggling with prolonged payment cycles from larger enterprise clients. Billboxx offers invoice financing, enabling SMEs to receive advance payments before their clients settle their dues, a crucial solution for maintaining healthy cash flow in any business.
However, prior approval from enterprise customers is required for payment processing. Billboxx applies a fee of up to 5% for invoice financing and a 1.5% transaction fee for payments made through its platform.
The company claims to process ₦1 billion monthly and boasts of no defaults in their services.
According to Obaoye, “We noticed that many businesses we engaged with faced billing inefficiencies and cash flow issues. Some still resort to manual invoicing or Excel spreadsheets.”
Targeting small to mid-sized businesses (SMEs), the startup also offers various business banking services to help SMEs better manage their finances.
Billboxx’s unique distribution strategy involves acquiring SME clients through partnerships with larger enterprises in its network. The company serves businesses such as Monument distillers and the International Institute of Tropical Agriculture (IITA). Obaoye highlights the company’s focus on tailoring solutions specifically for small and medium-sized businesses, distinguishing it from competitors that cater more to mid-market and enterprise clients.
Obaoye envisions Billboxx as the financial operating system for SMEs across Africa. The company plans to expand its operations throughout the continent and will soon introduce a new feature to facilitate SMEs’ access to new market opportunities within corporate ecosystems. Further details about this feature were not disclosed.