Billboxx, a Nigerian fintech company specializing in invoicing and cash flow solutions for small and medium-sized enterprises (SMEs), has successfully raised $1.6 million in a pre-seed funding round. The company intends to use this capital to scale its operations, hire new talent, and expand its product features. The $1.6 million funding, which is a combination of debt and equity, was secured from a diverse group of investors, including Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
Founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx was established to address the cash flow challenges that SMEs frequently encounter, particularly due to long or delayed payment cycles from their larger enterprise partners. Through its invoice financing service, Billboxx enables SMEs to receive advance payments on their invoices before their clients settle their accounts, providing a crucial cash flow solution for these businesses.
However, customers must first receive approval from their enterprise clients before the payment is processed. Billboxx charges up to 5% for invoice financing and a 1.5% transaction fee for payments made through its platform. The company claims to process ₦1 billion monthly and reports having no defaults.
We realized that every business we have interacted with had a lot of billing inefficiencies and cash flow problems. Some of them still do invoices manually or with Excel sheets.
Justus Obaoye
In addition to invoice financing, Billboxx offers a range of business banking services designed to help SMEs manage their finances more effectively. The company’s unique distribution model involves acquiring SMEs through partnerships with larger enterprises on its roster. Notable clients include Monument Distillers and the International Institute of Tropical Agriculture (IITA). Obaoye emphasizes that Billboxx differentiates itself by providing solutions tailored specifically to small and medium-sized businesses, unlike competitors who focus more on mid-market to enterprise clients.
We plan to become the financial operating system for SMEs in Africa.
Justus Obaoye
Looking ahead, Billboxx plans to expand its operations across Africa and will soon launch a new feature that will allow SMEs to access new market opportunities within corporate ecosystems. While Obaoye did not provide further details about this feature, it is expected to significantly enhance the company’s service offerings and support its growth strategy.
