Nigerian Fintech Startup Bankly Raises $2m To Expand Operations

Nigeria’s fintech startup, Bankly which is digitising thrift collection on Wednesday announced that it has raised $2m seed funding from Vault and Flutterwave to expand its operation.

Bankly, a Nigerian fintech startup which is digitising thrift popularly known in Nigeria as ‘esusu,’ ‘ajo’ or ‘adashe’ was founded by Tomilola Adejana and Fredrick Adams in 2018.

A seed round funding is a form of securities offering in which an investor invests capital in a startup company in exchange for a share holding capacity or convertible note stake in the company.

Early last year, the company had about 2,000 Bankly agents that helps it collect savings from customers across Nigeria.

But currently, that number has grown to 15,000, according to the company.

With the $2m seed round funding, Bintly hopes to double the number of its agents to 35,000 customer base in cash-dependent communities.

The company would also provide direct-to-consumer products later this year.

Bankly also believes with the funds, it could grow its customer base to 2 million unbanked Nigerians by 2024.

The CBN had set an unrealistic target of increasing the number of banked Nigerians from 60 per cent to 80 per cent by 2020.

But Bankly said in line with that it was working with the apex bank to achieve the target by 2025.

“We’re thrilled to have closed this milestone fundraise and to have such seasoned fintech investors who understand the market join us on this journey to bank Nigeria’s unbanked.

” Now we have built the agent network and are poised to serve customers directly via offline and online channels.

” Partnerships, collaboration, and a deep understanding of the needs of the unbanked will be vital to our success,” Adejana the company’s Chief Executive Officer said.

She said the company was careful to choose partners that would key into its vision for the unbaked and would not request for immediate repayment of funds.