Nigerian fintech startup Billboxx has raised $1.6 million in pre-seed funding to scale its operations and expand its product features. The company, founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, aims to solve cash flow issues faced by Small and Medium-sized Enterprises (SMEs) in Nigeria.

The $1.6 million funding round, a mix of debt and equity, was raised from a consortium of investors including Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures. The capital injection will enable Billboxx to hire new talent, expand its operations, and develop new product features.

Billboxx's invoicing and cash flow solutions are designed to help SMEs overcome the challenges of long or delayed payment cycles from their larger enterprise partners. The company's invoice financing service allows SMEs to receive advance payments before their clients pay, providing a crucial cash flow solution for businesses. However, customers must first receive approval from their enterprise customers before payment is approved. Billboxx charges up to 5% for invoice financing and 1.5% transaction fees for payments done on its platform.

According to Obaoye, the company's founder, Billboxx has processed ₦1 billion monthly and has no defaults. The startup's unique distribution model allows it to acquire SMEs through partnerships with larger enterprises on its roster, including Monument Distillers and British America Tobacco. Obaoye emphasizes that Billboxx differentiates itself by providing a solution tailored to small and medium-sized businesses, unlike competitors who focus more on mid-market to enterprise businesses.

Billboxx plans to expand across Africa and launch a new feature that will allow SMEs to access new market opportunities within corporate ecosystems. Although Obaoye did not share further details about the feature, the company's ambitious plans are clear. "We plan to become an operating system for SMEs in Africa," Obaoye said.

The funding round and Billboxx's expansion plans are significant for the Nigerian fintech ecosystem, which has seen a surge in innovation and investment in recent years. As the company continues to grow and expand its services, it is likely to have a positive impact on the SME sector in Nigeria and beyond.

With its unique solution and ambitious plans, Billboxx is well-positioned to make a significant impact in the African fintech landscape. As the company continues to scale and expand its operations, it will be interesting to see how it navigates the challenges and opportunities of the African market.