The funding, which comprises both debt and equity, was sourced from Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Established in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx addresses the cash flow challenges that SMEs often encounter due to prolonged payment cycles from larger corporate partners. Through its invoice financing service, SMEs can access advance payments prior to receiving funds from their clients, providing a vital cash flow solution.
However, it is essential for customers to obtain approval from their enterprise clients before payments can be processed. Billboxx charges a fee of up to 5% for invoice financing and a 1.5% transaction fee for payments made via its platform.
The company claims to handle ₦1 billion in transactions monthly and reports no defaults.
"We discovered that many businesses we engaged with faced significant billing inefficiencies and cash flow challenges. Some still rely on manual invoicing or Excel spreadsheets," Obaoye stated.
Primarily catering to small and mid-sized businesses, the startup also provides additional banking services to assist SMEs in managing their finances more effectively.
Billboxx asserts that its distinctive distribution model enables it to reach SMEs through collaborations with larger enterprises. Notable clients include Monument Distillers and the International Institute of Tropical Agriculture (IITA).
Obaoye highlights that the company sets itself apart by offering solutions specifically designed for small and medium-sized businesses, in contrast to competitors that target mid-market and enterprise clients.
“We plan to become the financial operating system for SMEs in Africa,” Obaoye said.
Billboxx plans to expand its African operations and will soon launch a feature connecting SMEs to corporate ecosystem opportunities in emerging markets. Further details on this feature are unavailable at this time.