Nigerian fintech, Nomba secures $30 million in pre-Series B round

Nomba, an African payment service provider, has secured $30 million in a pre-Series B funding round. The African fintech company, previously referred to as Kudi, seeks to use the funds to expand its payment solutions for African businesses.

Nomba’s latest funding round

Nomba’s pre-Series B funding round places the firm’s value at over $150 million. The round was led by Base 10 Partners and follows the $5 million Series A funding round in 2019. In addition to existing investors like Partech and Khosla Ventures, the round has attracted new backers like Shopify and Helios Digital Ventures.

At the time of launching in 2016, Kudi was introduced into the market as a chatbox integration with the ability to respond to financial requests on social apps. As an online solution operating via an agency banking model, the fintech worked with small businesses and individuals as agents.

It supplied the agents with POS terminals to offer crucial financial services to the underbanked and unbanked individuals in Nigeria. This included cash transfers, withdrawals, and bill payments.

However, as it changed its name, it also shifted to an omnichannel platform with an array of management and business tools. In particular, the firm has payment solutions and software tools tailor-made for three crucial business segments.

To begin with, agents and unit merchants have access to a POS terminal with features including instant cash withdrawal and bill payments. For medium-sized businesses, the offerings include POS terminals and software tools necessary to track payments across an enterprise’s outlets.

Enterprise customers are yet another category, with access to POS capabilities and software tools meant for inventory and order management as well as invoicing. This also includes APIs for payment reconciliation and processing.

Notably, over 300,000 businesses use at least one of the Nomba-powered products. Subsequently, the company processes transactions worth about $1 billion in a month. Besides, from 2020 to-date, Nomba has had its revenue grow by 150% YoY.