Pivo, a Nigerian fintech that provided banking services to small supply chain businesses, is closing down one year after securing a $2 million seed round.
Established by Nkiru Amadi-Emina (CEO) and Ijeoma Akwiwu (COO) in July 2021, Pivo was a startup that provided banking services specifically tailored for small logistics and haulage businesses in Nigeria’s supply chain sector.
As reported by BitKE, in late 2022, the Nigerian startup, announced the close of a $2 million seed round from several investors including:
- Precursor Ventures
- Vested World
- Y Combinator
- FoundersX, and
- Existing investor, Mercy Corp Ventures
The startup said it would be building new products while also exploring expansion to East African markets.
Pivo’s goal was to address the liquidity challenges prevalent in Africa’s supply chain by offering financing solutions to businesses within the sector. This included support for logistics service providers, clearing and forwarding businesses, and fast-moving consumer goods (FMCG) distributors.
The startup operated two major products:
- Pivo Capital, which offered lending products
- Pivo Business, a business banking product
Within a year of its launch, the company reported disbursing over $3 million in loans through Pivo Capital and processing more than $4 million through Pivo Business.
Pivo extended credit to businesses in the supply chain sector, particularly those requiring funds from lenders to facilitate transactions before receiving payment from buyers. The startup implemented a validation process with prospective buyers to ensure the legitimacy of the deals before providing credit.
According to the company, this approach contributed to achieving an impressive 98% repayment rate.
Pivo’s closure is part of a trend among African startups facing challenges in 2023. Several startups across the continent have shut down in 2023. The economic downturn and an increasing funding gap have created a challenging environment for African startups, leading to over a dozen closures.
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