Split between equity and debt, the funding round was led by
Aruwa Capital Management with participation from HAVAÍC and AAIC.
CrowdForce will use the capital to expand its team,
geographical operations and marketing to increase its agent network. CrowdForce
aims to grow its 7,000 active agents three-fold this year. The startup will
distribute more point of sale (PoS) terminals to small businesses - gas stations,
pharmacies, and aggregators/resellers - which act as mobile bank branches.
"Fintechs and challenger banks are emerging in Africa
to deliver better financial services via digital rails. It’s a fantastic
development in the market, but cash is clearly still king in Nigeria. 97% of
retail transactions happen offline", Oluwatomi Ayorinde, CrowdForce CEO
and co-founder stated.
Adding that, "there is a clear need to build an offline
distribution network to enable fintechs and challengers to reach the mass
market - this is exactly what we’re doing at CrowdForce. and this round will
accelerate our momentum even more"
CrowdForce has been cash positive since 2020 and served 1.9m
unique customers in 25 Nigerian states
to date. The startup's user growth has increased 25% month-on-month.
Founded by Oluwatomi Ayorinde and Damilola Ayorinde in 2015
as MobileForms, a data analytics platform designed to provide insights on
hard-to-reach rural and semi-urban areas for businesses, NGOs and development
organizations.
However, the startup modified its offerings in 2019,
becoming a technology-driven agent distribution network that enables data
collection for businesses and delivery of financial services to the mass
market.
Prior to the pivot, the YC-backed startup worked with the
Nigerian government on one of its project, TraderMoni, a small loan scheme for
micro traders. The scheme's objective was to provide micro traders with
repayable loans to enable their businesses. Unfortunately the database to
execute the project was unavailable.
CrowdForce (then MobileForms) leveraged its 20,000-strong
agents and was able to get 4.5 million eligible traders and registered them for
the TraderMoni program.
Over the last three years, CrowdForce has partnered with
cash-heavy small businesses, converting them to mobile bank branches while
safely storing their cash on a PayForce digital wallet.
The startup has partnered with 19,000 fuel stations, 20,0000
resellers, and 6,000 pharmacies to broaden its distribution network. CrowdForce
aims to bring financial services within one kilometer, or within 15 minutes, of
all Nigerians.
Access to financial services in Nigeria remains a challenge.
There are 4.8 bank branches and 19 ATMs per 100,000 adults, compared to the
world average of 13 bank branches and 40 ATMs. Less than 1/3 of Nigerian adults
have access to a bank branch or ATM within one kilometer of where they live.
Unreliable infrastructure also undermines trust in the
banking system - roughly 15% of card transactions fail on a POS. According to EFINA, 63.2m of 99.6m adults in Nigeria
are financially included.
According to Adesuwa
Okunbo Rhodes, Aruwa Capita's Founder and Managing Partner, "We see
significant value in the product as it is solving a real problem by providing
access to critical financial services in rural areas that have been overlooked
by traditional financial institutions".
"CrowdForce is actively deepening financial inclusion
through its products and services, and has unique competitive advantages
through its proprietary technology and extensive agent distribution network
across the country", Adesuwa stated.
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