Churpy, a Kenyan fintech startup Unicorn Growth Capital led a $1 million seed round.
Also participating were Antler East Africa, Nairobi’s business angel network and a group of Rally Cap LPs. This round will support South Africa’s expansion into Nigeria, Egypt and Nigeria.
Founded in 2020 by John Kiptum and Kennedy Mukuna, Churpy helps businesses manage B2B receivable operations securely & scalably. It has developed a SaaS-based payment and invoice reconciliation product.
It is targeted at local companies that manually complete these processes. Its API links them to local banks such as Sidian, Stanbic, Citibank and NCBA.
The Trade Development Bank recently provided $15 million to Churpy for loans to SMEs through its banking partners.
As we prepare to enter Egypt and South Africa as the hubs of their economy, we are increasing our staff. [respective] regions. We are also putting finances into product development as we plan to scale our offering,” Churpy co-founder and CEO, John Kiptum said.
“SMEs have a huge financing gap. They are suppliers to large companies and require capital to continue supplying raw materials to other customers.
“Usually they need collateral to access loans from banks and wait for approval to access capital to keep their business going. We make sure they get paid as soon as they deliver goods to their partners companies. There is an origination fee at 0.5%. Once their bill is due, we get paid,” says Mukuna.
Unicorn Growth Capital founding partner and CEO Barbara Iyayi said: “It is clear that B2B payment operations are significantly under-penetrated and ripe for modernization and disruption globally.
“We are excited to partner with the Churpy team as the first mover in the market. Churpy, the only end-to-end platform available, provides invoice marketplace and reconciliation as well as automated accounts receivables. It also integrates B2B payments to specific markets.
“They are well-positioned to be a critical partner to businesses and lenders in Africa, and can effectively address the significant credit gap faced by SMEs for supplier finance and working capital.”