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Home Startups Nigerian fintech startup, TeamApt secures over $50 million for expansion

Nigerian fintech startup, TeamApt secures over $50 million for expansion

by Milcah Lukhanyu
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TeamApt, a Nigerian fintech startup that offers business payments and banking platforms, has secured over $50 million in pre-series C funding.

The investment  was led by QED Investors, a U.S. fintech-focused venture capital firm and Novastar Ventures with participation from Lightrock and BII .

According to the  company, the fund will be utilised to expand its credit services, expand into new markets, and spread financial happiness by digitising Africa’s economy.

While commenting on the fundraising, founder and Chief Executive Officer of TeamApt, Tosin Eniolorunda said: “We always approach our fundraising effort opportunistically and want to make sure the market context, cash needs of the business and investor profile match our strategic growth views. Given the overarching cautious market environment, we were not in active fundraising mode. As a profitable company, we did not need the cash, but we were happy to take an opportunity to add a new high-profile investor.”

“From our bootstrapping days, we built products where we can see positive unit economics from day one, which has continued to be reflected in our profitability. This has put us in the realm of the few attractive cash-flow-positive hyper-growth companies — even as we continue growing at triple digits year-on-year, while at the same time expanding our margins,” he added.

TeamApt is a financial technology company focused in developing Digital Banking, Business Solutions and Payments Infrastructure.

The company operates one of Nigeria’s largest business payments and banking platforms and processes a $100 billion annualized run-rate transaction value on its products Moniepoint and Monnify products.

Currently Moniepoint  serves 400,000 small and medium-sized businesses across Nigeria, allowing them to access various features to manage operations such as working capital, business expansion loans and business management tools such as expense management (business payments cards), accounting and bookkeeping solutions and insurance.

Eniolorunda said this new financing round would help TeamApt widen its credit offerings. The company’s lending portfolio is still small as it continues to lend from the balance sheet of its microfinance bank subsidiary. But as its portfolio expands, the company plans to leverage multiple lending partnerships, including banks, development finance institutions and securitization structures, to access debt facilities.

QED Investors partner and head of Africa, Gbenga Ajayi said: “I am proud to bring Africa to QED and QED to Africa. I could not think of a better way to enter the continent than with our investment in TeamApt. Tosin and his team have steadily built an impressive payment and distribution network across Nigeria over the past five years. Their strong and positive unit economics, coupled with a deep customer focus, will enable them to continue to build out an even more expansive network.”

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