Company Secures $4.3M Seed Funding to Strengthen B2B Payments System in Nigeria | The Guardian Nigeria News

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Duplo, a business-to-business payment platform that enables African businesses of all sizes to pay each other, has raised $4.3 million in seed funding to launch new products and expand into new business sectors in Nigeria.

The seed funding round included Liquid2 Ventures, Soma Capital, Tribe Capital, Commerce Ventures, Basecamp Fund and Y Combinator. Oui Capital also reinvested after participating in the previous round.

Since going live in January 2022, Duplo has claimed to have traction with FMCG distributors and midsize and enterprise finance teams, helping them digitize and simplify the way money flows between them and their Commercial Partners.

FMCG distributors can onboard retailers into their network on the Duplo platform, making it easier for them to collect payments digitally and access real-time insights into business performance. They can also automate payments to vendors, manufacturers, and suppliers, with instant payments allowing them to transact in larger quantities.

For finance teams, Duplo’s end-to-end solution automates back-office processes for generating and processing invoices, receiving and approving invoices, collecting and disbursing funds, and reconciling accounts. Duplo works seamlessly with all major accounting and ERP platforms such as Microsoft Dynamics, SAP, QuickBooks, and Sage, and payments processed through Duplo are automatically synced to these platforms in real time.

According to the World Bank, B2B payments in Sub-Saharan Africa represent a $1.5 trillion market. However, the payment and receipt process remains largely manual, making it costly and highly inefficient for businesses. Invoices are also not standardized and they are usually issued and received manually, which increases the administrative burden on business owners, which takes more time and effort that can be invested in their business.

A recent Duplo report, which included the surveyed opinions of over 1,000 business owners from Kenya, Nigeria, South Africa and Egypt, also highlighted that 44% of businesses still have to wait more than 24 hours to receive payments from customers and business partners.

34% take up to 7 days to receive payments, 17% take up to 30 days and 3% take more than 30 days to receive business payments. This presents a significant challenge for businesses, which are often unable to maximize the sales and growth opportunities available to them due to cash restrictions brought about by complex payment processes.

According to CEO and co-founder of Duplo, Yele Oyekola, “We have seen a lot of innovation in consumer payments in Africa in recent years, but business-to-business payments have remained largely the same. We strongly believe that there is a excellent opportunity to catalyze growth and maximize business opportunities across the continent by removing the bottlenecks that impede the continuous flow of money between businesses and we are delighted to have raised funds from this exciting group of ‘investors to offer as much -need for transformation’.

Oui Capital Director Peter Oriaifo said: “The Duplo team has built an incredible suite of products that improve the way businesses make and receive payments from each other, and the growth the business has seen. since our initial pre-seed investment in 2021. has been nothing short of impressive. It is for this reason that we are delighted to support Duplo once again.

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