Billboxx, a Nigerian fintech focused on invoicing and cash flow solutions for small and medium enterprises (SMEs), has successfully raised $1.6 million in a pre-seed funding round. The capital will be utilized to scale operations, hire new talent, and expand product features.
The funding, a combination of debt and equity, was secured from several investors, including Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Billboxx Overview
Founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx addresses the cash flow challenges faced by SMEs, particularly those dealing with lengthy payment cycles from larger enterprise partners. The company’s invoice financing solution allows SMEs to receive advance payments, which is crucial for maintaining healthy cash flow.
To utilize this service, customers must first obtain approval from their enterprise clients before payments are approved. Billboxx charges up to 5% for invoice financing and a 1.5% transaction fee for payments processed on its platform. The company claims to process ₦1 billion monthly and reports no defaults among its clients.
Billboxx Market Insights
Obaoye noted, “We realized that every business we have interacted with had a lot of billing inefficiencies and cash flow problems. Some of them still manage invoices manually or with Excel sheets.” Billboxx primarily serves small to mid-sized businesses and offers additional banking services designed to enhance financial management.
The company employs a unique distribution model that facilitates SME acquisition through partnerships with larger enterprises. Billboxx collaborates with notable organizations such as Monument Distillers and the International Institute of Tropical Agriculture (IITA). Obaoye emphasized that Billboxx differentiates itself by catering specifically to SMEs, unlike competitors who tend to focus on mid-market and enterprise clients.
Billboxx Future Plans
Obaoye stated, “We plan to become the financial operating system for SMEs in Africa.” Billboxx aims to expand its footprint across the continent and will soon launch a new feature designed to provide SMEs access to new market opportunities within corporate ecosystems. Further details regarding this feature have not yet been disclosed.
With this funding and strategic vision, Billboxx is poised to significantly impact the financial landscape for SMEs in Nigeria and beyond, addressing critical cash flow challenges and enhancing operational efficiency.
