Duale, Ovia & Alex-Adedipe advises Piggy Bank in its US$1.1 Million Seed Funding Round

Posted on Jun 05, 2018

Leading Nigerian Full service Law Firm Duale, Ovia and Alex-Adedipe has advised Africa’s fast growing Nigerian investment startup Piggybank.ng in its US$1.1 million seed funding round. Piggybank also announced a new product — Smart Target, which offers a more secure and higher return option for Esusu or Ajo group savings clubs common across West Africa.

The financing was led with a US$1 million commitment from LeadPath Nigeria, with Village Capital and Ventures Platform contributing US$50,000 each. Founded in 2016, Piggybank.ng offers online savings plans — primarily to low- and middle-income Nigerians — for deposits of small amounts on a daily, weekly, monthly, or annual basis. There are no upfront fees.

Savers earn interest rates of between 6 to 10 percent, depending on the type and duration of investment. Piggybank.ng was founded by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze. Users need an account with one of PiggyBank.ng’s bank partners to use the products. The startup generates returns for small-scale savers (primarily) through investment in Nigerian government securities, such as bonds and treasury bills.

PiggyBank.ng generates revenue through asset management and from the float its balances generate at partner banks. The startup looks to grow clients across younger Nigerians and the country’s informal saving groups. Odunayo Eweniyi believes that Piggybank is not just about savings, as they seek to become a holistic platform inclusive of a financial warehouse where other financial providers can plug in their services for PiggyBank users. She cited banks, investment houses, insurance, and pension funds as possible partners.

The company currently has 53,000 registered users — 60 percent of whom are Nigerian Millennials — who have saved in excess of US$5 million since 2016. PiggyBank.ng will use its US$1.1 million in new seed funding for “license acquisition and product development. As for how the company assures savers it won’t become another Ponzi scheme, Piggybank.ng and its lead investor point to the startup’s pending banking license with Nigeria’s Central Bank.

The company is in the process of acquiring a micro-finance banking license a development Olumide Soyombo Founder Leadpath confirmed. He also pointed to Piggybank’s client balances being held with registered banks, which are protected with the Nigerian Deposit Insurance Commission (NDIC). Soyombo will also be taking a role on Piggybank.ng’s board.

Duale Ovia & Alex-Adedipe has over the years established a reputation as the leading Nigerian law adviser for Telecommunications media and Technology having acted for such Firms such as The Terragon Group in its Series A funding and Arca Payments Company a frontline Nigerian Financial Technology company in connection with a strategic investment of 5,000,000.00. Duale, Ovia & Alex-Adedipe is a bespoke full-service commercial law firm in Nigeria that provides a wide range of expert legal services to a highly diversified client base both local and international operating in various sectors of the economy.

The Firm has specialist skills in areas including but not limited to Admiralty & Shipping, Aviation, Banking and Finance, Company Secretarial, Capital Market, Energy and Natural Resources, Government Relations, Intellectual Property, Litigation and Dispute Resolution, Telecommunication, Media and Technology, Taxation, Real Estate and Construction and was recognized by the Nigerian ESQ Legal Awards when it was awarded the Real Estate and Construction Team of the Year as well as Telecommunication Media & Technology Legal team of the year.