Flutterwave, Africa’s highest-valued startup, invested in Piggytech, the parent company of PiggyVest, the Nigerian fintech widely used for savings, in 2023.
- Flutterwave’s recent investment is part of PiggyVest’s ongoing efforts to secure external funding.
- Sources put the investment amount at $3 million.
- In 2018, PiggyVest secured its last major venture funding round, raising $1.1 million from a group of angel investors.
Flutterwave’s recent investment is part of PiggyVest’s ongoing efforts to secure external funding, a process that has been in the works for more than two years.
According to TechCabal, the deal is structured as a SAFE (Simple Agreement for Future Equity), which means Flutterwave made the cash investment into PiggyVest with the promise of receiving equity in a funding round in the future.
“Terms of the deal are not being disclosed at the moment,” Piggyvest told TechCabal in an official statement confirming the deal.
Two sources with knowledge of the matter have estimated the investment amount to be $3 million. Before this investment, PiggyVest had publicly disclosed $1.1 million in venture funding.
The fintech company revealed that it had received a total of $5 million in venture funding since 2016, a detail that had not been previously reported.
In 2018, PiggyVest secured its last major venture funding round, raising $1.1 million from a group of angel investors. Subsequently, in 2021, Nigerian investment firm VFD Group announced the acquisition of a 12% stake in the company.
Per the report, the acquisition of a 12% stake in PiggyVest by VFD Group involved a combination of cash investment and the merger of a competing VFD Group product.
Established in 2016, PiggyVest enables users to maintain funds in their savings accounts on the platform and earn interest on their deposits.
The platform disbursed ₦400 billion ($497.3 million) last year alone and claims it now has over 4.5 million registered users on its wealth management service.