I have been following PiggyBank since their launch in 2016, and to see them grow aggressively over 2017 is amazing! Reading through the co-founder’s article on medium gave an impressive look into the steady execution and future of the company. I must say, it’s an impressive journey of how a Nigerian startup can be gritty, execution-minded and be awesome!
Everyone in the world is aware of the need to save, and particularly in Nigeria(maybe Africa), we have Esusu culture of regularly saving money daily, weekly and monthly; most times jointly. I personally participated in joint-saving while in high school and running a small business. If there is any challenge to scale from that model, it’s the fact that, some people default after they have collected the fund contributed by everyone.
With PiggyBank, you are able to safe, put a SafeLock on it, and be sure to get your money when the time comes, say 3months time. The pain you get from the emergence of easy access (e-banking) to your money is the fact that, you can pull out your savings too quickly and as such, not be able to get the value of saving for a significant period.
(By William Iven, Unsplash)
Till date, PiggyBank has participated in 3 accelerators; Village Capital, PitchDrive and BlackBox, all in 2017. When you look at the pattern of execution, you will see a coordinated, ambitious and lean(viral) approach to how they execute their strategies. I want to believe that their participation in the accelerators shaped greatly, the way they execute.
When you run a startup, getting a helping-hand in thinking through and executing your strategy has a value that can never be underestimated.
According to the last banking report, there are about 97.57m bank account holders in Nigeria, this is the Total Addressable Market (TAM) for the startup and given that we can assume a 25% Servicable Addressable Market (SAM) from the lot. Remember not all Nigerians with banking account will be ready to save money YET in a startup. This will change over time as their acquisition of a microfinance license could insure customer deposit as well, giving customers more confidence.
In 2017, the startup grew 30,000% from 21m savings to close to 1 billion naira just within 12 months? That’s super impressive. According to the CEO, 30% of the money is in SafeLock, meaning customers have a pre-determined time for withdrawal and as a business, they can do investment with the money and make more.
This year 2018, we see PiggyBank breaking new ground and growing savings by at least 500%. With the acquisition of a microfinance, they will be able to hold money for longer, open a standalone bank account for customers and be able to introduce new products that will push them to the mainstream.
On the funding side, we predict (going by the pattern of startups in Nigeria) a $1.2m series a funding before the end of the year.