Company Secures $4.3M in Seed Funding to Strengthen Nigeria’s B2B Payment System | The Guardian Nigeria News

Duplo, a business-to-business payments platform that enables African companies of all sizes to pay each other, has raised US$4.3 million in seed funding to bring new products to market and new businesses in Nigeria to expand.

The seed funding round included Liquid2 Ventures, Soma Capital, Tribe Capital, Commerce Ventures, Basecamp Fund and Y Combinator. Oui Capital also reinvested after participating in the previous round.

Since launching in January 2022, Duplo has claimed to gain a foothold with FMCG distributors and finance teams of mid-sized and large companies, helping them digitize and simplify the way money moves between them and their business partners.

FMCG distributors can integrate retailers into their network on the Duplo platform, making it easier for them to collect payments digitally and access real-time insights into store performance. They can also automate payments to sellers, manufacturers, and suppliers, with instant payments allowing them to transact in bulk.

For finance teams, Duplo’s end-to-end solution automates the back-office processes of creating and processing invoices, receiving and approving invoices, collecting and disbursing funds, and completing account reconciliation. Duplo works seamlessly with all major accounting and ERP platforms such as Microsoft Dynamics, SAP, QuickBooks and Sage, and payments processed via Duplo are automatically synchronized with these platforms in real-time.

According to the World Bank, B2B payments in sub-Saharan Africa represent a $1.5 trillion market. However, the process of paying and receiving payments remains largely manual, making it expensive and highly inefficient for businesses. Invoices are also non-standard and tend to be issued and received manually, increasing administrative burdens for business owners and costing more time and effort that can be invested in their businesses.

A recent report by Duplo, which included the opinions of more than 1,000 business owners from Kenya, Nigeria, South Africa and Egypt, also highlighted that 44 percent of businesses still have to wait more than 24 hours to accept payments from business customers and partners to obtain.

34 percent take up to 7 days to receive payments, 17 percent take up to 30 days, and 3 percent take more than 30 days to receive business payments. This poses a significant challenge for companies who are often unable to maximize the sales and growth opportunities available to them due to cash flow constraints caused by complex payment processes.

According to Yele Oyekola, CEO and co-founder of Duplo, “We’ve seen a lot of innovation in consumer payments in Africa in recent years, but business-to-business payments have largely stayed the same. We firmly believe that there is a tremendous opportunity to catalyze growth and maximize business opportunities across the continent by removing the bottlenecks that impede the smooth flow of cash between companies and we are excited to be part of this exciting group raised funds from investors to do so much – transformation needed”.

Peter Oriaifo, Principal at Oui Capital, said: “The Duplo team has built an incredible suite of products that improve the way companies make and receive payments from each other and the growth the company has seen since our first pre- seed investment in 2021 has been nothing short of impressive. For this reason we are happy to support Duplo again.

Comments are closed.