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Nigerias Prospa gets $3.8M pre-seed to offer small businesses banking and software services

In Nigeria, there are more than 40 million micro-businesses underserved in some form or another regarding banking services. Although some of these businesses haveregistered bank accounts, gaps exist in how banks use the data available to serve the needs of each business.
With banks, presenting a series of transactions as statements is all these businesses require. They care less about providing them with insights and growth opportunities around their customers and products.
A fintech startup, Prospa wants to change that and has begun to tap into this market. In March, the company was one of the 10 African startups participatingin Y Combinators winter batch. A few months past graduation, the startup, combining both worlds of banking and business management tools for micro and small businesses, has closed a $3.8 million pre-seed round.
Prospa was founded by Frederik Obasi, Chioma Ugo and Rodney Jackson-Cole. As a serial entrepreneur running businesses in tech and media, Obasi experienced how tough running operations and banking his business simultaneously was in Nigeria.
Banks only concerned themselves with providing some financial services so people like Obasi had to look for software or personnel to cater to the operational parts of their businesses.
Forsomeone who runs a large business with a considerable influx of cash, it is easy to assign staff or buy software to delegate tasks. But it can be expensive and a daunting task for smaller businesses; thats why most of them struggle.
Sensing an opportunity, Obasi and his team launched Prospa under the premise that they would cheaply solve the needs of these small business owners in banking and software.
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