Billboxx, a Nigerian financial technology company focused on solving cash flow issues for small and medium enterprises (SMEs), has raised $1.6 million in a pre-seed funding round. The funding, a combination of debt and equity, was secured from investors including Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx provides a platform that offers invoicing and cash flow solutions tailored to SMEs. The startup’s flagship service is invoice financing, which allows businesses to receive advance payments on outstanding invoices before their enterprise clients settle the payments. This service addresses a critical pain point for SMEs, which often struggle with delayed payment cycles that disrupt cash flow and hinder operations.
Speaking on the company’s mission, co-founder Obaoye noted, “We realized that many businesses face significant inefficiencies in billing and cash flow management. Some still rely on manual invoicing or outdated tools like Excel sheets. Billboxx is here to modernize these processes and provide financial stability.”
The company charges up to 5% for invoice financing services and a 1.5% transaction fee for payments processed on its platform. Billboxx claims it processes ₦1 billion (approximately $1.3 million) monthly in transactions and has experienced no defaults to date. However, customers must first secure approval from their enterprise clients before funds are disbursed, a mechanism designed to mitigate risk.
The new funding will be used to scale Billboxx’s operations, enhance product offerings, and expand its team. The company also aims to strengthen its presence in the Nigerian market and position itself as a leading financial solutions provider for SMEs across Africa.
“We plan to become an operating system for SMEs in Africa,” Obaoye said, adding that the company’s long-term vision includes enabling SMEs to tap into new market opportunities within corporate ecosystems. While details about upcoming product features remain under wraps, the company’s roadmap includes integrating additional services to provide a comprehensive financial management solution.
Billboxx’s distribution model leverages partnerships with large enterprises to onboard SMEs, creating a mutually beneficial ecosystem. Its clientele includes companies like Monument Distillers and British American Tobacco, underscoring its credibility in the market. Unlike competitors that primarily target mid-sized to large enterprises, Billboxx focuses on the underserved SME segment.
Before co-founding Billboxx, Obaoye and Ogunjobi were instrumental in launching Fixit45, a Nigerian auto-tech startup that raised $1.9 million in pre-seed funding in 2023. The duo’s efforts helped Fixit45 establish a network of over 300 workshops across nine cities and partnerships with more than 1,200 spare parts distributors. Within a year of Fixit45’s funding announcement, Obaoye and Ogunjobi exited the company to launch Billboxx, signaling a pivot to addressing broader B2B challenges.
The funding comes at a time when SMEs in Africa face persistent challenges in accessing credit and managing cash flow, exacerbated by long payment cycles from larger business partners. The fintech sector in Nigeria has seen significant growth, with startups raising substantial funds to address gaps in financial inclusion and enterprise solutions.
By offering tailored services for SMEs, Billboxx is positioning itself to fill a critical void in the market. Its focus on reducing billing inefficiencies and improving liquidity for smaller businesses could catalyze economic growth and support the broader ecosystem of suppliers and service providers.
With ambitious plans for regional expansion and a commitment to innovation, Billboxx aims to redefine how SMEs across Africa manage their finances. The company’s progress will be closely watched as it scales its operations and continues to build partnerships with enterprises.