Prospa Raises $3.8 Million Pre-Seed Fund
Nigerian startup raises the largest pre-seed in the country's fintech history.
Prospa, a Y combinator backed startup said it has raised a $3.8m pre-seed fund to offer software and financial services to Nigerian entrepreneurs and micro-businesses.
According to Prospa, the pre-seed round was oversubscribed by 380% to become the largest pre-seed round in Nigeria’s Fintech history.
Prospa’s pre-seed round was supported by venture capital firms, Global Founders Capital and Liquid 2 Ventures. Influential entrepreneurs who participated in the round include Teachable’s Ankur Nagpal, Mercury’s Immad Akhund, Ramp’s Karim Atiyeh, Todd Goldberg and Rahul Vohra’s investment fund and foremost entrepreneurs from Facebook, Square, and Nubank.
Prospa plans to accelerate customer acquisition, develop its product offerings and scale its team with a focus on product and engineering.
Prospa said its plans to further accelerate customer acquisition, scale its team with a focus on product and engineering and develop its product offerings. It has a user base growth of 35% month-over-month and currently has thousands of users who subscribe monthly. Since Prospa was founded in October 2019, users have sent 360,000 invoices and logged 20,000 unique inventory items monthly on the platform.
Frederik Obasi, Co-Founder/CEO said: “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.”
Don Stalter, GFC Head of North America asserted: “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.”
Immad Akhund, Mercury Founder/CEO added: “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.”