In a recent development, Flutterwave, Africa’s leading startup, has invested $3 million in PiggyTech, the parent company of PiggyVest, a Nigerian fintech known for making saving trendy since mid-2023. The investment deal is structured as a SAFE (Simple Agreement for Future Equity), reflecting Flutterwave’s commitment to receiving equity in a future funding round.
PiggyVest did not disclose the specific terms of the agreement. However, two reliable sources indicate that the investment amount stands at $3 million. This marks a significant boost for PiggyVest, which had previously disclosed only $1.1 million in venture funding.
Notably, PiggyVest has been actively seeking external funding for over two years. The recent investment by Flutterwave provides a strategic alliance, allowing Flutterwave to deepen its relationship with PiggyVest as the latter continues its investment round despite challenges related to valuation terms and the global economic downturn.
PiggyVest’s last major venture funding round was in 2018, securing $1.1 million from angel investors. In 2021, VFD Group acquired a 12% stake in PiggyVest through a mix of cash investment and a merger of a competing VFD Group product.
Despite facing challenges, PiggyVest has sustained decent growth and claimed profitability. The holding company reported annual revenues of around $25 million in 2021, with a slight increase to approximately $27 million in 2022. These figures, previously undisclosed, demonstrate PiggyVest’s financial stability and steady progress.
Founded in 2016, PiggyVest has evolved its business model over the years. Initially created as a savings platform for young Nigerians, the app now operates under PiggyTech Global Holdings Limited, offering multiple services, including PiggyVest (wealth management), Pocket (consumer payments), and Patronize (point-of-sales).
PiggyVest’s journey involves a transformation from a deposit-holding service investing in government assets to a holding company with a fund manager license from the Securities and Exchange Commission (SEC). This evolution positions PiggyVest as a comprehensive financial services provider with a diversified portfolio.
The Flutterwave investment not only injects much-needed capital into PiggyTech but also solidifies a strategic partnership between two prominent players in the African fintech landscape. As PiggyVest continues its pursuit of external funding, this collaboration sets the stage for further innovation and growth in the evolving financial technology ecosystem.
