CrowdForce raises $3.6m fund to increase access to cash in underserved communities

CrowdForce, a Nigerian fintech company, has announced it closed a $3.6 million pre series-A investment.

In a statement on Saturday, the firm said the round, split between equity and debt, was led by Aruwa Capital Management with participation from HAVAÍC and AAIC.

CrowdForce said it will use the capital to increase its PayForce agent network three-fold in 2022 to deepen its financial service offerings to underserved Nigerian communities.

Oluwatomi Ayorinde, chief executive officer of CrowdForce, said the firm aims to bring financial services within one kilometer or within 15 minutes of all Nigerians.

“Fintechs and challenger banks are emerging in Africa to deliver better financial services via digital rails. It’s a fantastic development in the market, but cash is clearly still king in Nigeria,” Ayorinde said.

“97% of retail transactions happen offline. There is a clear need to build an offline distribution network to enable fintechs and challengers to reach the mass market – this is exactly what we’re doing at CrowdForce. and this round will accelerate our momentum even more.”

He added that the firm will distribute more point of sale (PoS) terminals to small businesses — gas stations, pharmacies and aggregators/resellers — which act as mobile bank branches.

“We are excited to lead this investment in CrowdForce. We see significant value in the product as it is solving a real problem by providing access to critical financial services in rural areas that have been overlooked by traditional financial institutions,” said Adesuwa Okunbo Rhodes, founder of Aruwa Capita.

“CrowdForce is actively deepening financial inclusion through its products and services, and has unique competitive advantages through its proprietary technology and extensive agent distribution network across the country.”