Pastel, a Nigerian digital accounting platform for traders, announced on Monday that it has raised a $5.5 million funding round.
The round, led by pan-African venture capital firm TLcom Capital, included other venture capital firms such as Global Founders Capital (GFC), Palme d’Or investmentsDFS Labs, Ulu Ventures, Plug and Play and Soma Cap.
The new funding would be rolled out to expand Pastel’s product offerings and develop more productivity and financial management features and tools around group savings, loans and payments for small businesses.
Formerly Sabi Cash, launched in September 2021, Pastel was founded by Abuzar Royesh, Olamide Oladeji and Izunna Okonkwo, Stanford graduate students who shared similar interests in creating digital tools to solve small business problems across the Africa from Nigeria.
Since launch, the company said it has created several mobile apps to help more than 120,000 small businesses manage their accounting, generate invoices and provide receipts.
He said he raised a pre-seed of $620,000 last year from some of his existing investors.
Speaking on the funding round, co-founder Izunna Okonkwo said that as a team, the company is taking a product-driven approach to growth after doing massive research on how users use the solutions and what they ask for.
He said: “The new capital will help us expand our efforts in this area as we seek to expand our product offerings and develop more productivity and financial management features and tools around savings. , loans and group payments for small businesses,” Okonkwo said. .
“Our thought process was that as soon as we had success, the next step was to capture value, so we added functionality to the Sabi app and what we’re building now is a bit more.
“The way we thought about it is, as opposed to creating a super app that a lot of other fintechs have or are looking for, we’re taking a more platform approach, which means any Pastel user can register with any of our applications with the same login and access all the other solutions we offer.
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