Fintech start-up Prospa raises $3.8mn pre-seed round to fund expansion

Nigerian fintech start-up, Prospa, has successfully closed a $3.8 million pre-seed round to fund its expansion plans and increase staff strength through acquisition strategies. Co-founder, Frederik Obasi, shed light on Prospa's unique value proposition and growth trajectory in a recent interview with CNBC Africa. Prospa's mission is to empower entrepreneurs by providing them with a holistic platform to manage their business operations and financial services seamlessly. Unlike traditional banking institutions, Prospa offers a consolidated solution that includes inventory management, customer relationship management, and online tools, all integrated into one user-friendly platform. This approach not only streamlines the business operations of small enterprises but also helps them save money by eliminating the need for multiple subscriptions to various tools and services. By harmonizing the business stack, Prospa aims to enable business owners to focus on growth and success. Prospa's successful pre-seed funding round of $3.8 million is a testament to its strategic approach to building a solid foundation before seeking investment. Obasi highlighted the importance of proving the business model, gaining real-life proof, acquiring customers, and building a strong product before approaching investors. Prospa's focus on laying a robust groundwork enabled them to attract top investors who understand the fintech space both locally and globally. The rise of fintech in Africa, particularly in countries like Nigeria, has made investors more selective in choosing where to allocate capital. Prospa's growth trajectory since its inception in 2019 has been impressive, with over 35% month-on-month growth and a strong organic presence. The company's user base continues to expand through referrals and partnerships with legal and financial professionals, positioning Prospa as a key player in Nigeria's fintech landscape. In a competitive market where multiple fintech players are vying for market share, Prospa distinguishes itself by taking a long-term view of the industry's evolution. With a focus on innovation and user-centric solutions, Prospa aims to solidify its position over the next five to seven years by catering to the unique needs of Nigerian entrepreneurs and businesses. When discussing the future of banking and fintech, Obasi emphasized the importance of understanding users' requirements and the changing landscape of financial services. While banks will continue to play a significant role, the rise of fintech companies and the potential for convergence between traditional banks and fintech entities present exciting opportunities for the industry. Prospa envisions becoming the operating system for all micro and small businesses, providing them with a comprehensive platform to manage their daily operations seamlessly. The company's roadmap includes expanding its user base, accelerating product development, and recruiting top talent to drive innovation and success in the market. With a clear vision and a commitment to empowering entrepreneurs, Prospa aims to be at the forefront of Nigeria's fintech revolution, reshaping the way small businesses navigate the digital economy.