NIGERIA – Piggyvest, a fintech startup which helps around three million users save and invest money, has acquired counterpart Savi.ng as it looks to build its customer base further.
Launched in 2016 as Piggybank before a 2019 rebrand, Piggyvest is an online savings and investment platform targeted primarily at low and middle income Nigerians, allowing them to deposit and put aside small amounts on a daily, weekly or monthly basis.
The startup has seen strong growth, repaying billions of naira to its users and already surpassing its 2020 figures in the first seven months of 2021, and is now set for the next phase of its development.
“The first half of 2021 has been an intense building period for the entire Piggyvest team,” the startup said in a statement.
“Earlier this year, we began discussions to acquire a savings and investment company, Savi.ng and all its assets and we are more than proud to announce today that the acquisition is now completed.”
Launched in 2018, Savi.ng was until the acquisition a wealth management app that allowed users to save via features like automated savings, fixed deposits, joint savings and PAYE. All existing Savi.ng users will now be automatically migrated to Piggyvest.
“Our vision remains the same, financial freedom for all, and with this acquisition, we are a step closer. We believe in a connected ecosystem and our mission to give everyone the power to better manage and grow their finances remains ever strong,” Piggyvest said.
According to Proshare, Fintech firms are filling the gap between financial services companies and customers by disrupting key financial services segments – digital payments (Paytech), digital insurance (Insurtech), banking (BancTec), wealth management services (Wealthtech), and regulations (Regtech) and creating space for selling financial products.
Big technology firms such as Apple, Facebook, Amazon, Google, and Alibaba have also entered the financial services space, enhancing innovation and competition.
According to CB Insights, Q2 2021 was the largest funding quarter on record. Across 657 deals, global Venture Cash-backed fintech companies raised a record US$30.8 billion in Q2 2021, 30% growth over Q1 funding record.
This impressive funding growth was accompanied by a modest 2% deal growth quarter-over-quarter and a 29% increase y/y. Funding activity grew in nearly all fintech sectors except for wealth tech and capital markets tech. The digital lending, banking, and SMB fintech sectors saw the most pronounced deal activity growth quarter on quarter.
Nigeria’s fintech industry continues to evolve on the back of technological advancement and demographic support as about half of the population is less than 25 years of age. Besides, the prevailing financial exclusion has resulted in low access to complex financial products for the masses.
Nigeria’s fintech landscape consists of about 210-250 fintech companies, key stakeholders (i.e., banks, telecom companies, and the government), enablers and funding partners (i.e., universities and research institutions, investors, incubators, technology, and consumers). According to Frost and Sullivan, Nigeria’s fintech revenue is expected to reach US$543.3m in 2022 from US$153.1m in 2017.