Nigerian startup, AjoMoney, is targetting providing additional financial options to community-based contribution schemes that are common among Africans.
Ajo in local parlance involves a group of people coming together to save a certain amount either daily, weekly or monthly.
In the scheme, each member has their turn when they receive the full amount contributed. This goes on amongst group members until the cycle rotation is completed, then restarted.
AjoMoney is primarily a credit platform, which chooses to solve problems around access to credit by leveraging on community-based connections and grassroots recommendations.
Enjoy early access to cash on AjoMoney.
Create a contribution group on the AjoMoney app and share your group link with trusted family and friends to raise money and fund planned projects.#Ajo #Cooperatives #Thriftcontribution #Adashe #Esusu #AjoMoney pic.twitter.com/fRNUwHyPFT
— AjoMoney (@ajo_money) August 25, 2022
The concept of AjoMoney is popular across the African continent. Some common informal savings unions in Africa are:
- Kenya – Chamas – East Africa
- Stokvel – Southern Africa
- Susus / Esusus – Western Africa
AjoMoney provides an app that these groups can use to manage their savings and finances. However, the app primarily offers an opportunity for the members of these savings groups to access micro-credit which they can use for their businesses.
One of the startups’ founders, Ibrahim Adepoju, explained how the app facilitates zero-interest credit among savings group members:
While the modern community and brands promote savings and investment, AjoMoney believes that you do not have to save money for six to 12 months to achieve your target goals, when you can save for three months and get what you need through zero-interest credit via community financing, and continue your savings to pay back. With this, people will achieve a lot and evade the challenges of rapid inflation in Africa
– Ajomoney
According to Adepoju, the startup has acquired more than 12,000 users and made $750,000 in gross transaction value (GTV), 80% of which was acquired organically.
The startup, which raised a seed round in April 2022, makes money through commissions and subscription fees.
AjoMoney is set on expanding its business and is already in stealth mode in Rwanda and in the process of acquiring licenses to operate in the country after having been successfully incorporated.
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