Nigerian-based fintech startup bridging the gap between small business owners and the finances needed for the growth of their businesses, Payhippo, has been accepted into the Y Combinator Summer 2021 accelerator cohort.
It is delightful to say that this comes after they recently raised a $1 million pre-seed fund from investors including Ventures Platform, Future Africa, Hustle Fund, Mercy Corps Ventures, Sherpa Ventures, Launch Africa, DFS Lab, among others.
Founded by Chioma Okotcha, Zach Bijesse and Uche Nnadi in January 2020, Payhippo solves the problems of inaccessibility to capital needed by the over 40 million small and medium-sized businesses both in Nigeria and beyond.
Some of these problems are results of lack of collateral, in other cases, interest rates are too high, among other problems.
So far, the startup claims to have disbursed more than 3,000 loans of over $4.1 million since launch and is looking to go far beyond this in no time.
The startup seeks to expand both in team size and its reach on the African continent. Hence, they believe this new opportunity of being selected for Y Combinator’s cohort will help and guide them in achieving their goals.
“We believe it’s already paying dividends both for operations as the brand name and global recognition of Y Combinator has brought interest from lending capital partners. YC also helps attract talent. Payhippo invests in talent and thus recruits the best people we can find. The YC brand name signals to the job market that working at Payhippo means people can contribute and do meaningful work,” Chioma Okotcha, co-founder of Payhippo, said in an interview with Business Insider Africa.
The outstanding and fast-growing impacts of the fintech sector in Africa cannot be ignored and this impact is felt globally.
The sector has contributed over $100 billion to sub-Saharan Africa’s economic output and this has been projected to increase by $40 billion in 2022.