Cashflow management startup Billboxx raises $1.6m in preseed funding

Nigerian cash flow management startup, Billboxx has raised $1.6 million in a preseed funding round. This was disclosed by the startup across various platforms. The round which comprises both equity and debt, was led by Norrsken Accelerator, as well as participation by other seasoned investors like Kaleo Ventures, Founders Factory Africa — FFA (now 54 Collective), P2Vest and Afrinovation Ventures.

Describing it as a “significant financial backing”, the startup says the raise will enable it to tackle the critical cash flow challenges faced by small and medium businesses across Africa. 

Speaking about what the funding round means to its cash flow management solution, Co-founder and CTO, Abdulazeez Ogunjobi, emphasized the transformative impact of the Billboxx platform noting that delayed invoice payments pose a significant threat to SME growth and survival. 

He explained that the platform not only streamlines the billing-to-payments workflows but also offers strategic embeddings to expedite payments. 

“Billboxx is dedicated to solving these issues with an integrated platform that ensures consistent cash flow and financial resilience for businesses. We aim to alleviate payment concerns and allow SMEs to focus on their core business. This funding round enables us to expand our impact and empower more SMEs to thrive,” he said.

Billboxx’s quest for cash flow management 

Founded in 2023 by serial founders, Justus Obaoye and Abdulazeez Ogunjobi, Billboxx is an integrated billing to payment platform which aims to ensure timely payments for businesses across Africa. 

Manual invoicing and deferred payments often result in delayed payments, stifling many SMEs. Thus, the startup says its integrated billing-to-payment platform streamlines the billing processes, reduces inefficiencies from manual invoicing, and mitigates the impact of deferred payments.

Cash flow difficulties are the leading cause of business failures in Africa, with delayed invoice payments being a major contributor, says Justus Obaoye, Co-founder & CEO of Billboxx.

By providing automated billing and invoicing, secure payment facilitation, and tailored cash flow financing, the startup says it is empowering businesses to achieve consistent cash flow while focusing on growth.

Billboxx says it has facilitated over four million dollars in invoice payments since launching its minimum viable product (MVP) in May 2023. The startup says its platform boasts strategic integrations with a leading commercial bank in Nigeria, a prominent African payment gateway, and multiple lending partners. These integrations enable seamless payment facilitation via bank transfers, cards, and financing options.

SME

Speaking about Norrsken’s participation in the round,  General Partner at Norrsken Accelerator, Alex Bakir, said the founders of the year-old startup are tackling a critical pain point affecting the growth of SMEs in Africa which they have experienced firsthand.

“Billboxx is tackling a critical pain point for SME growth in Africa — managing cash flow. The team has experienced first-hand the challenges associated with invoices and payments and is committed to building solutions that simply work for small businesses across the continent. We’re proud to support Justus, AZ and the team, and see huge potential in financial solutions Billboxx is developing.” he said.

The two co-founders also bring extensive entrepreneurial experience to Billboxx. They previously co-founded two startups: Charistouch (Carido), successfully acquired by Cars45, and Fixit45, a spin-off from Cars45. Their leadership experience in large corporations and scale-ups such as Schlumberger, Bolt, and OLX add to their strategic insight and entrepreneurial prowess.

Speaking about 54 Collective’s backing, Chief Executive Officer, Bongani Sithole,  said it all comes down to the expertise and the experience of the founders and their team.

 “We’re enthusiastic about the innovative work the Billboxx team is building. These 3x founders with successful exits under their belts are leveraging their leadership and business experience to tackle a massive pain point for SMEs across Africa. We invested in the Company due to the large market size of the opportunity, impressive early traction gained from strong early partnerships with notable large corporates and startups, as well as the solid tech product the team has developed. We’re delighted to back Justus and Abdulazeez as they continue to scale Billboxx,” he said.

See also: Bolt passengers in Calabar, Uyo endure sweaty rides as drivers switch off air conditioning