Nigeria’s Fintech Traction raises $6 million to speed up Progress and develop operations

Traction, the Nigerian-based service provider resolution platform, has raised a $6 million seed spherical in funding led by Multiply Companions and Ventures Platform with participation from P1 Ventures amongst different buyers. The capital infusion goals to drive enlargement, speed up development, and strengthen the corporate’s crew.

Traction is a one-stop platform to deal with these challenges confronted by companies. It allows companies to just accept funds, handle funds, and entry important operational instruments. With Traction, enterprise homeowners can settle for funds through POS terminals or digital accounts, use point-of-sale software program to file their gross sales, monitor stock, and handle clients by way of CRM & loyalty options. Traction additionally provides a spread of economic providers, Together with service provider wallets, money advance loans, financial savings, and invoice funds.

Co-founder Mayowa Alli explains, “Our aim at Traction is to be the digital working system for companies on the continent. We need to assist them digitize their operations, effectively handle funds, and make better-informed selections.”

Traction makes use of funds as an entry product to supply a wider vary of providers to retailers.The corporate units itself aside within the aggressive service provider buying area by sustaining a devoted concentrate on companies, not like many agent-led fashions making an attempt to pivot in the direction of enterprise providers.

Co-founder, Dolapo Adejuyigbe emphasised that from the outset, Traction has been centered on serving retail enterprise homeowners, avoiding company banking. Its merchandise and interfaces are tailor-made to fulfill the particular wants of enterprise homeowners and managers. The deep help mannequin was designed primarily based on suggestions from enterprise homeowners, who worth having a devoted relationship supervisor to information them by way of their digitization journey.

Moreover, Traction has solid partnerships with different ecosystem gamers, permitting them to supply vertical-specific propositions to clients. As an illustration, companies within the meals and resort sectors, can entry their menus and reservation administration techniques, respectively, seamlessly integrating them with their funds .In 2022, Traction achieved exceptional development with a 7x improve in income and an 8x surge in transactions whereas serving over 70,000 companies in Nigeria.

The corporate stays dedicated to sustaining this upward trajectory in Nigeria in 2023, as extra companies actively search to digitize their fee processes and improve total operations, pushed by invaluable insights from the money crunch and their aspirations for enterprise enlargement. Whereas the seed funding has been centered on scaling operations in Nigeria, Traction plans over the following 18 months to discover development exterior Nigeria both organically or by way of M&A

Traction additionally obtained its funds resolution providers license from the Central Financial institution of Nigeria, a 3-in-1 license in 2022, permitting it to function as a fee resolution supplier throughout numerous fee classes. This license marks a major milestone for Traction, making it one of many pioneering Fintech corporations to obtain such recognition from the regulatory authority.

Dotun Olowoporoku Basic Accomplice, Ventures Platform reiterated “Traction stands out as greater than a fee processor, it’s an indispensable development companion to Nigerian SMEs. The corporate’s industry-specific software program, together with its monetary providers market, provides related enterprise options, reasonably priced capital, and insurance coverage. We’re excited in regards to the crew’s potential to proceed delivering product innovation, and Traction’s potential to unlock immense worth for SMEs, that are the bedrock of Africa’s financial system

The milestone seed funding empowers Traction to increase its operations all through the African continent, driving important influence on SMEs and reinforcing its standing as a transformative participant within the tech ecosystem.

With this newest capital infusion, Traction is poised for accelerated development, and the corporate stays dedicated to its imaginative and prescient of empowering companies with cutting-edge options, fostering success throughout the African enterprise panorama.

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