Bamba, a Mobile-first enterprise software that enables micro-merchants to access their business via mobile devices in Africa has received seed funding of $3.2 million to expand its app and grow its team.
The company is currently operating in stealth mode. It will use the capital to expand its mobile product offering, scale its engineering staff and increase its user base in 12 sub-Saharan African nations with high mobile money penetration.
Bamba was founded by Bastian Gotter (2022), a serial entrepreneur and investor. It is a mobile app that allows merchants to manage customers, track stocks, make payments and access cash advances against future cash flows.
Sub-Saharan Africa’s micro, small and medium-sized businesses account for 90% of all businesses and provide more than half the jobs. Registered and unregistered merchants will accept over 2.1 billion dollars in 2021. $250 billion in mobile money payments, recording rapid growth.
Merchants face new challenges when they have to pay out cash and mobile money at the same time. However, this also opens up opportunities for digitalising business payments and record-keeping.
The digitalization process can vastly improve credit access, which is one of the biggest obstacles to the growth of small-scale businesses in Africa.
The IFC estimates Sub-Saharan Africa’s small business credit gap at $331 billion. Bamba’s mobile application sits at the heart of the digitalisation process improving both the payments experience and the access to credit for micro merchants.
Commenting on the raise Bastian Gotter Founder & CEO, Bamba said, “We truly believe entrepreneurship is essential to prosperity, so we make running a small business easier by building mobile-first small business software for Africa. This investment allows us to scale the platform, the team and gives us access to insights from our high calibre of investment partners.”
Ludwig Ensthaler, Partner, 468 Capital commented: “We are thrilled to invest and support the team and vision at Bamba. We feel that the investment opportunities in “enterprise” software focused on small businesses in Africa are significant and remain largely untapped. We believe that Bamba is well placed with a great product and a solid founder to build a category-defining company.”
Fabian Hansen, Investor, Presight Ventures added: “We appreciate entrepreneurs that build novel solutions that push boundaries and are thrilled to support Bamba’s potential impact across the small businesses ecosystem in Africa.”
Dan Jones Partner, Jigsaw VC commented, “Bamba sits at the intersection between cash and mobile money, between payments and credit. We believe there is a significant opportunity in this space and are keen to explore it with Bastian.”
The IFC has estimated that the sub-Saharan Africa credit gap for small businesses is $331 billion.