CBN Grants Super Agent Banking License to Fintech Startup, Kippa

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Nigerian fintech startup Kippa has announced that it has been granted a super-agent banking license by the Central Bank of Nigeria (CBN), giving the company leverage to further its ambition to make it easier for anyone to start and run a profitable small business in Africa. .

Super Agent, an entity authorized by the Corporation and authorized to conduct certain banking activities within the community such as depositing and withdrawing cash, paying bills (utilities, taxes, rental rates, subscription, etc.), cash disbursement and cash repayment of loans, etc., must be licensed By the Nigerian regulator that created this license to allow more entities that are not financial institutions to provide services that promote financial inclusion.

Launched in June of last year, Kippa began as a finance management app that allows small business owners to track their daily income and expense transactions, create invoices and receipts, manage inventory, and monitor their overall business performance over time.

In November 2021 the company raised a whopping $3.2 million in seed funding, with the round led by Berlin-based VC Target Global. Other venture capital firms that participated included Entrée Capital, Alter Global and Rally Cap Ventures. Babs Ogundeyi (CEO of Kuda), Kyane Kassiri, Sriram Krishnan (a Khatabook investor), Raffael Johnen (CEO of Auxmoney) and other angel investors have invested in tandem.

The startup, which in November 2021 has more than 130,000 active companies that processed $130 million, revealed that it now has more than 500,000 merchants registered within its network, noting that it recorded an annual transaction value of more than $3 billion.

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Kippa CEO and co-founder Kennedy Ikezi described acquiring this license as a logical next step for the fintech startup in an interview with TechCabal:

“What this license does is it really allows us to empower all of our customers with the tools and infrastructure to not only accept payments, but to start providing financial services to their end customers,” said Ekize. “It gives us the opportunity to implement integration with national switches and allows us to provide the business, platform, and services to other fintech companies.”

Kippa’s licensing heralds that he is one step closer to becoming a new bank, following in the footsteps of several African fintech startups such as Fairmoney, Eversend and Branch that have evolved into one.

But CEO Ekezie on the call with TechCabal saw that Kippa was not considering a new bank move yet.

“We are definitely not going to use the word neobank to describe what we are trying to do,” Ekezi said. “What companies want is not a new place to put their money, in my experience. Companies want opportunities, tools and financing to grow sustainably and in a profitable way. With that in mind, we try to continue to provide them with solutions to enable them to do so.”

The startup serves merchants across Nigeria’s 36 states with Lagos, Ibadan, Abuja, Port Harcourt and Kano being the top five states where the merchants are located.

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