Flutterwave, currently Africa’s most valuable startup, has invested in Piggytech, the parent company of Nigerian fintech startup, PiggyVest. According to a confirmed official statement from PiggyVest, the deal is structured as a SAFE (Simple Agreement for Future Equity), implying that Flutterwave invested cash into PiggyVest with the expectation of receiving equity in a future funding round.
The terms of the deal have not been disclosed, but sources suggest an investment of around $3 million.
The investment comes as part of PiggyVest’s broader strategy to raise external funding, an endeavour they have been pursuing for over two years. Flutterwave’s investment facilitates a more profound connection with PiggyVest as the latter continues its fundraising efforts.
Since its founding in 2016, PiggyVest has grown to become a popular platform for young Nigerians to save money and learn financial discipline. Its business model has evolved over the years, transforming from a deposit holding service that invested customer funds in government assets to a holding company that currently operates multiple services.
The company claims to have disbursed over ₦1.1 trillion ($1.37 billion) to customers by the end of 2022 and boasts over 4.5 million registered users on its wealth management service.
Notably, Nigeria’s VFD Group bought a 12% stake in the company in 2021, which resulted in their involvement with the rollout of “Pocket” and “Patronize”, products by PiggyVest. PiggyVest’s holding company reportedly recorded annual revenue of around $25 million in 2021 and roughly $27 million in 2022.
