Firm Receives $4.3 Million In Initial Money To Expand Nigeria’s B2B Payments Infrastructure

Firm Receives $4.3 Million In Initial Money To Expand Nigeria’s B2B Payments Infrastructure

In order to introduce new products and enter new business sectors in Nigeria, Duplo, a business-to-business payment network that enables African companies of all sizes to transact with one another, has acquired $4.3 million in early capital.

Along with Y Combinator, Liquid2 Ventures, Soma Capital, Tribe Capital, Commerce Ventures, Basecamp Fund, and others participated in the seed fundraising round. Following its involvement in the previous round, Oui Capital also made a new investment.

Duplo asserted that since being online in January 2022, it has gained popularity with FMCG distributors and the finance departments of midsize and enterprise organizations, assisting them in digitizing and streamlining the exchange of funds with their business partners.

FMCG distributors may add merchants to the Duplo platform, making it simpler for them to accept payments online and gain real-time business performance information. Additionally, they can automate payments to suppliers, manufacturers, and vendors, and quick payments let them do more transactions in larger volumes.

Duplo’s end-to-end solution automates the back office procedures of creating and processing invoices, accepting and approving bills, gathering and disbursing payments, and concluding account reconciliation for finance departments. Every major accounting and ERP platform, including Microsoft Dynamics, SAP, QuickBooks, and Sage, is compatible with Duplo, and payments processed through Duplo are instantly synchronized with these systems.

The sub-Saharan African market for B2B payments is estimated by the World Bank to be worth $1.5 trillion. However, the payment procedure is still primarily manual, which is expensive and incredibly inefficient for enterprises. Additionally, invoices are often generated and received manually, which adds to the administrative burden on business owners and consumes additional time and energy that could be used to grow their companies.

44 percent of firms still had to wait longer than 24 hours to get payments from clients and business partners, according to a recent Duplo analysis that featured the perspectives of more than 1,000 business owners from Kenya, Nigeria, South Africa, and Egypt.

34 percent of businesses receive payments within 7 days, 17 percent within 30 days, and 3 percent within more than 30 days. Businesses face a big problem because they can’t always take advantage of their chances for growth and sales because of cash flow issues brought on by complicated payment procedures.

CEO and co-founder of Duplo, Yele Oyekola, said “we have seen a lot of innovation in consumer payments in Africa in recent years but business-to-business payments have largely stayed the same. We strongly believe that there is a great opportunity to catalyse growth and maximise business opportunities across the continent by removing the bottlenecks that hinder the seamless flow of money between businesses and we are excited to have raised funding from this exciting group of investors to deliver this much-needed transformation”.

Principal at Oui Capital, Peter Oriaifo, said, “The Duplo team has built an incredible suite of products that improve how businesses make and receive payments from each other, and the growth that the company has experienced since our initial pre-seed investment in 2021 has been nothing short of impressive. It is for this reason that we are excited to back Duplo once more.”

 

 

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