A comprehensive overview of Payhippo: key features, Valuation, Funding & Investors

Payhippo is a Nigerian fintech startup founded in 2019 by Chioma Okotcha, Uche Nnadi, and Zach Bijesse, with a focus on easily accessible loans and financial services to SMEs across Africa.

It uses alternative data to underwrite collateral-free loans in three hours, a solution to the main problem of funding that most SMEs face.

Aside from lending, it provides business banking solutions like accounts, debit cards, and international money transfers, as well as insurance products such as asset protection and business interruption coverage.

Payhippo was formed with the aim of making financial services easy and empowering African SMEs toward sustainable growth.

Payhippo is trusted by over 130,000 people, and it’s growing more popular all the time.

This Payhippo review will show you what to expect if you’re thinking of using Payhippo for loans, banking services or insurance.

Key features of Payhippo?

A comprehensive overview of Payhippo: key features, Valuation, Funding & Investors

Payhippo is a FinTech company that seeks to solve some crucial financial issues among SMEs in Africa by providing a suite of services and products aimed at empowering SMEs with accessible and effective financial solutions.

1. Loans

Payhippo offers quick access to collateral-free loans to SMEs, giving access to working capital within less than three hours.

The platform actually uses alternative data sources, such as bank statements, transaction history, and even social media activity, to correctly capture creditworthiness for underwriting.

These loans are tailored to the dynamic needs of SMEs, where they facilitate operations with cash flow management, stock inventory, and/ or expanding operations.

2. Banking Services

Apart from lending, Payhippo provides a fully rounded banking service offering to SMEs.

This would cover business accounts for prudent cash flow management, debit cards to ensure smooth transactions, and international money transfers for cross-border activities.

This integrated approach ensures SMEs can manage their finances with ease, reducing operational bottlenecks.

3. Insurance

Drawing from the risks SMEs are exposed to, Payhippo also offers insurance products such as asset protection and business interruption cover.

These policies safeguard businesses against unforeseen challenges, fostering long-term sustainability.

Payhippo through its innovative offerings empowers the SMEs with means to grow, stay resilient, and meaningfully contribute to economic development.

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Payhippo`s Mission

Payhippo’s vision is to make financial services seamless for African SMEs, in line with its understanding that they are the backbone of the continent’s economy.

SMEs ensure job creation, innovation, and economic development but have to surmount several challenges in their quest for accessible, affordable financial services.

This is where Payhippo wants to fill the gap by providing specialized financial solutions to engender further growth and prosperity for such businesses.

This company is built on the belief that access to finance shouldn’t be a barrier to potential SMEs.

The company grants collateral-free loans in three hours, which can be used for urgent needs, stocking inventories, or investing in growth opportunities with agility that beats the long delays of traditional banking systems.

Besides lending, Payhippo offers an array of financial tools, from business banking to insurance products, which enable SMEs to effectively manage their operations and cover their assets and flow of activities in case of disruptions.

Using technology and alternative data, Payhippo has made sure to provide access to businesses that normally would not have access to such services.

This mission statement reaffirms the commitment of this company to the economic empowerment and resilience of African SMEs for long-term prosperity across the region.

Payhippo’s achievements

Since its founding, Payhippo has made remarkable strides in exerting a key force within the fintech landscape to empower small and medium-sized enterprises in Nigeria.

In the span of a year, the company has given out over 25,000 loans to Nigerian SMEs, showing that it has co-opted into the dire task of making accessible financing in an economy that is day by day being polished by unpredictable obstacles.

With its data-driven assessment and collateral-free loans, Payhippo has emerged as a trusted financial partner for companies seeking fast and reliable finance. But its successes are not limited to lending.

Payhippo has also gained tremendous investor confidence, seen in over $3 million in fundraising from big venture capital firms like Y Combinator, Ventures Platform, and Future Africa.

This funding has allowed the company to scale its operations, enhance its technology, and expand its suite of financial products, including banking and insurance services tailored to the unique needs of SMEs.

These achievements demonstrate the potential of Payhippo to change the face of financial access for underserved businesses across Africa.

Its disruptive approach, rapid growth, and backing from leading investors underpin its contribution to economic growth and resilience, enabling SMEs to fulfill their potential while contributing to the overall growth and development of the African economy.

Payhippo`s Valuation, funding & Investors

Payhippo is a Nigerian fintech company that recently started providing financing to empower small and medium-sized enterprises but has not disclosed any recent valuation.

Still, the company has attained significant heights in funding. By 2021, it had raised more than $3 million in seed funding from investors like Y Combinator, Ventures Platform, and Future Africa to improve its technology and increase its team toward ensuring better servicing of SME financial needs throughout Nigeria.

The startup, founded in 2019, joins a wave of African fintechs making waves in SME financing with their use of technology in offering fast, collateral-free loans.

Payhippo has shown promising growth on the disbursal of loans in excess of 5,000 at an earlier stage of operation, and a 97% repayment rate.

Payhippo`s Impact

Payhippo is changing the world, one SME at a time in Nigeria, by solving one of the most critical financial needs facing small and medium-sized enterprises in the country.

The startup has given out more than 25,000 loans to SMEs for quick access to collateral-free credit-a facility that was largely unavailable earlier.

Alternatively, it uses data and effective technology to ensure that businesses get funds within hours to grab growth opportunities, afford operational expenses, and build financial stability.

Beyond lending, the wider vision for Payhippo involves a decrease in financial exclusion among SMEs, common in Nigeria, where traditional banks mostly request collateral or make an individual undergo endless procedures.

By offering adapted financial products-including business accounts and insurance-Payhippo helps businesses not just get access to capital but also manage and protect such capital.

This integrated approach empowers the SMEs to flourish in a competitive economic environment.

FAQs

What is Payhippo?

Payhippo is a Nigerian fintech startup offering financial services such as loans, business banking, and insurance to SMEs.

When was Payhippo founded?

Founded in 2019 by Chioma Okotcha, Uche Nnadi, and Zach Bijesse.

What services does Payhippo provide?

Payhippo offers rapid, collateral-free loans, business accounts, debit cards, international money transfers, and insurance products such as asset protection.

How quickly can the loans be availed by the SMEs from Payhippo?

You can get loans within three hours of application.

What’s unique about Payhippo?

Payhippo leverages alternative data such as bank statements and social media activity to determine creditworthiness and grant access to financing to underserved SMEs.

Who are Payhippo’s investors?

Investors include Y Combinator, Ventures Platform, Future Africa, and leading African fintech founders.

Conclusion

Payhippo has been a game-changer in the financial ecosystem for SMEs in Nigeria, breaking the gap in the access of much-needed services.

Using the power of technology and alternative data sources, it has so far offered fast loans, collateral-free, empowering businesses to combat operational and growth challenges.

This is supported by other offerings like business accounts and insurance products. Through all this, Payhippo offers an end-to-end financial ecosystem for SMEs, thus supporting them to be inclusive and resilient.