Nigerian Fintech Startup Prospa closes $3.8M Pre-seed Funding

Nigerian Fintech startup Prospa has announced it raised $3.8m in a pre-seed funding round.Liquid 2 Ventures and Global Founders Capital led the round. Other participants were both global fintech founders like Ramp’s Karim Atiyeh, Mercury’s Immad Akhund, and executives from Facebook, Teachable, Nubank, and Square.

Prospa was founded by Frederik Obasi, Rodney Jackson-Cole, and Chioma Ugo in 2019, to provide both banking and business management tools for micro and small businesses.

Prospa acts as the operating system for entrepreneurs and freelancers by providing them insights into their customers and products.

More so, Prospa also offers inventory management, invoicing tools, e-commerce stores, employee and vendor management, and payroll features.

The fintech startup claims it has managed over 150,000 product catalogs, has thousands of businesses in its portfolio, and is also growing 35% month-on-month.

Frederik Obasi, Prospa’s co-founders speaking on the funding said:

“Banking is just a little part of what we do. We know we’re put into the neobank category, but we see our product as 10% banking and 90% software.

So the experience is very much different from what you’d get from a neobank and the use case for Prospa users is quite different”.

Prospa plans to use this new capital to expand by developing acquisition strategies to get more customers.