Pivo Africa Closes A Year After Securing $2M Funding

Pivo Africa, a Nigerian fintech startup, backed by Y-Combinator, recently ceased operations after launching in 2021. The company secured $2 million in funding in November 2022 to expand into East Africa and help SMEs overcome supply chain obstacles. Pivo Africa had two primary categories of services: Pivo Capital and Pivo Business.

The digital financial services platform provided SME vendors in the supply chain and small businesses in Nigeria with digital banking services. Pivo Capital provided lending services for logistics service providers, clearing and forwarding businesses, and FMCG distributors, while Pivo Business provided a business banking product tailored to the specific requirements of supply chain businesses.

The company faced numerous challenges, including tough competition from established fintech companies, economic struggles due to the devaluation of the naira, rising production costs, and high loan interest rates, as well as internal conflicts. However, despite these hurdles, the tech industry in Nigeria is thriving, with startups making significant progress in various industries, such as agriculture, education, fintech, e-commerce, and healthcare.

Pivo Africa’s founders remain optimistic about the future of fintech in Nigeria and are exploring new opportunities to provide affordable and accessible financial services to underserved communities in the country. They believe that by continuing to innovate and adapt to the changing needs of the market, they can help drive economic growth and development in Nigeria and beyond.