Microtraction funds Nigerian fintech startup Pivo

Pivo is a credit-focused financial service company for small and medium-sized businesses in the supply chain. It has received funding from Microtraction, an early-stage VC firm.

Pivo 702x336 1Pivo was founded last year by Nkiru Amadi-Emina, and Ijeoma Jacquelyn Ashwiwu. It offers supply chain owners a better and more efficient way of accessing financial services. Pivo Capital is the company’s flagship product. It allows companies to get working capital loans up to US$50,000 to scale their businesses.

It also offers trade financing support. This allows suppliers to fulfill customer orders even if they don’t have the upfront capital. The company expects to launch the Finance product in beta by the end of this first quarter. This feature will allow users to create and manage a customized corporate bank account.

Pivo borrowed capital from microtraction in September to fund the product expansion. Microtraction was founded in 2017 and invests in startups in the very early stages of their development. It has backed a number of Nigerian startups such as Riby, Thank U Cash and CowryWise. Pivo is just one of the 14 investments that the firm made in 2021.

Microtraction stated in a statement that there are approximately 20 million SMEs working in the supply chain/logistics sector and that these businesses account for 40 percent of the US$48billion in annual revenue.

Tradeshift, a global supply chain financing group with American Express and Goldman Sachs, recently crossed the US$1 trillion threshold in terms of transaction value. This is a double-digit increase in just two years. As it expands its multi-product strategy, we expect Pivo will repeat this success over the next few years.

Pivo had 100 customers at the time of the investment and processed over US$100,000. These numbers have increased more than doubled since then with 70% of loans going to sub-contractors in logistics.

Get latest news from African Startup ecosystem

Latest stories

You might also like...