OZÉ, a fintech startup that provides MSMEs in West Africa with digital recordkeeping tools and embedded financial products, has raised $3 million in a pre-Series A investment led by prominent venture capital firm Speedinvest. The oversubscribed round included Cathay AfricInvest Innovation Fund, Savannah Fund, and numerous Angels with experience managing and investing in global fintech.
“During grad school at MIT, I was flying back and forth between Cambridge and Ghana. One day I would be buying things at the market, the next — sitting in a lecture theater with the technologists building the future of finance. Straddling both worlds has allowed us to build a platform that leverages advanced technologies and maintains a deep understanding of customer needs on the ground. Our role is to build a platform that works for 100 million-plus businesses today and supports the creation of the future of commerce in Africa,” Co-Founder and CEO of OZÉ, Meghan McCormick, said.
OZÉ will use the funds to extend the capabilities of its platform and enhance access to affordable finance in Ghana and Nigeria.
Why The Investors Invested
OZÉ has generated appreciable traction since it was founded. The startup currently has a customer base of over 125,000 company owners. The number of monthly active users on the OZÉ platform increased by 1200 percent last year. From Q3 to Q4 of 2021, the number of loans authorized climbed by 200 percent quarter-on-quarter. The synergy that OZÉ fosters between business owners and banks instills true trust in the West African economy; business owners can get the financing they need, while banks have experienced a steady increase in repayment rates due to more precise digital recordkeeping.
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“There has been a lot of interest in the digitization of SMEs in Africa over the last year. We have also observed the space carefully as we believe that there is tremendous potential in building the financial operating systems for African MSMEs. We are extremely excited to partner with the OZÉ team as we believe they have the right leadership and strategy in place to build the strongest platform in this market,” Philip Specht, principal at SpeedInvest said.
A Look At What The Startup Does
Founded in 2018, the OZÉ platform is unique in Africa in that it gives business owners with tools to understand and improve their performance, as well as funding to help them develop. Business owners may use the platform to keep track of transactions, manage receivables, get paid by customers, get business coaching, and apply for a loan right from the app. There isn’t a lot of competition in this market. Other platforms provide specific services, but OZÉ’s comprehensive approach supports actual growth; 97% of business owners who use the platform run profitable, growing, or both profitable and expanding firms.
OZÉ also permits access to a proprietary data set of performance and behavioral data, giving the firm a competitive edge in assessing and grading credit risk. OZÉ collaborates with financial institutions to give small business financing. Because of OZÉ’s processes and relationships with business owners, loans provided through the platform can be made without collateral, in higher amounts, and over a longer period of time without raising risk.
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“The last decade has seen a huge transformation in the digitization of business. Accelerated by the pandemic, we are now seeing an even greater demand for solutions to financial challenges like accepting payments, understanding cash positions, and securing loans to increase stock for busy periods,”co-Founder and COO of OZÉ, Dave Emnett, said.
OZÉ
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer