Online and mobile app savings platform, Piggybank.ng has secured seed investment of $1.1 million.

That is about 396 million naira, if converted into Naira using the prevailing parallel market exchange rate of 360 naira per dollar.

In a statement, Piggybank said the seed round was led by Olumide Soyombo, Founder of LeadPath Nigeria, with participation from International and Pan-African investors, Village Capital and Ventures Platform.

The statement said the startup will deploy the VC investment for license acquisition and product development.

Speaking on the investment, Co-founder and COO of Piggybank.ng, Odunayo Eweniyi, said: “In a country such as Nigeria, almost everything has to be paid in advance.

Also Read: 5 Things You Should Know About Piggybank.ng

“The majority of Nigerians struggle to save their income, manage cash flow and build credit, which is a huge problem as around 80% of Nigerians need to save a minimum of 40% of their monthly income, in order to survive.

“This is the sheer scale of the challenge we are embracing; to actively promote a savings culture in Nigeria and act as the savings infrastructure to millions of people who want a safe, transparent and innovative platform to assist them in managing their finances, on their journeys to financial freedom.”

Also speaking, Piggybank's Co-Founder and CMO, Joshua Chibueze said: “Today’s announcement allows us to expand and capitalise on the many opportunities that the market presents us with.

"Our growth so far has been stimulated almost entirely by peer-to-peer advocacy and our investment in the highest quality customer service, so we know the market is there, and the product has been built, modified, tested and ratified by users.

"With this fundraise, we can invest significantly in our people and products, as we build a digital financial warehouse accessible to millions of Africans whose savings woes we want to put firmly behind them.” 

*From Left: Piggybank Co-founders: Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze

On his part, the investor, Founder LeadPath Nigeria, Olumide Soyombo said: “Piggybank.ng is a leading example of how Africans are innovating to solve African problems. In this case, the team is applying technology and innovation to solve a problem facing millions of Nigerians; how can they accrue enough money to make down-payments on so many ‘life events’, in a market where there’s little to no access to credit?

“Led by a solid and experienced executive team, who have recorded significant growth after two years of bootstrapping, and have built a product that is ready to scale, I’m excited to have led other local angel investors in this investment round, and to now work closely with the team to grow the platform”

Read More: Start-Up Funding: Read This Before Accepting Money From Any Investor

In addition to securing this seed funding, Piggybank.ng has recently acquired a micro-financing license from the Central Bank of Nigeria, CBN, which provides the relevant regulatory cover, allowing them independence from partnering with banks. 

Piggybank.ng has recorded 20 - 35% month-on-month growth in user traction over the past 12 months; primarily from peer-to-peer recommendations, its referral program - Piggybank Stories, and grass-roots social media campaigns.

Piggybank was founded in 2016 by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze, who are all graduates of Covenant University.

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