Barely four years after launch and bootstrapping to profitability, TeamApt, a Nigerian fintech company that provides digital banking business solutions and payment architecture for businesses, has raised $5.5 million in Series A funding.
Lagos-based Quantum Capital Partners, the sole investor in this financing round, is owned by Jim Ovia, who is also chairman of Zenith Bank.
A series A round is a company’s first significant round of venture capital financing, and represents preferred stock sold to investors in exchange for their investment.
Chief Executive Officer of TeamApt, Tosin Eniolorunda, recalling the bootstrapping of his start-up, says the company earlier decided not to raise funding from external investors. According to him, raising funds too early for start-ups traps them in a cycle of fear and inability to take risks or innovate spontaneously.
Eniolorunda recalls on-boarding 98% of Nigerian banks as customers with its payments solutions, and recording 4500% revenue growth, $160 million in monthly transactions, 55 deployed solutions, 100,000 active monthly users and 71 staff.
The company’s first client was the Computer Warehouse Group (CWG) with which it closed a deal to build a payment solution.
In 2016, TeamApt developed and launched its first Point of Sale (PoS) acquiring solution for Fidelity Bank. By end of 2018, not fewer than 26 Nigerian banks had adopted its PoS solution.
TeamApt has also developed Moneytor, a digital banking solution that enables financial institutions to track transactions on mobile and web platforms, and Monnify, an enterprise software targeted at small and medium enterprises.
TeamApt plans to use its new funding to build its AptPay App, and other business and consumer products.
TeamApt projects to expand its operations to markets in Europe and Canada by the fourth quarter of this year.