South Africa: Fintech Startup Nomanini Raises $1.5 Million Round

Nomanini raises a new funding worth US$1.5 million from new and existing investors. It wants to use this new funding to grow its team, invest in product development, and scale its offering.

Inclusion Times
Inclusion Times

Nomanini, founded in 2010, is a platform that enables informal merchants and micro-entrepreneurs in emerging markets to distribute digital goods such as airtime and prepaid electricity. Furthermore, the fintech startup offers micro-loans to merchants and operates in markets such as Ghana and Mozambique,

The startup in 2019, raised a US$4 million funding round led by Standard Bank, Africa’s largest bank, and completed by Goodwell Investments, an Amsterdam-based investment firm. These two investors have each pumped an additional US$500,000 into this latest round.

This new partnership follows the company’s pan-African deal with Standard Bank Group signed in 2019.

A new investor in Nomanini's latest funding round is FMO – the Dutch Entrepreneurial Development Bank. FMO is also contributing US$500,000. The company will leverage the funding to grow its network of financial service providers and value chain partners, invest in product development and operational scalability, and expand the team with top-tier talent working across Africa.

Nomanini, with previous funding from Goodwell and Fundamo founder Hannes Van Rensburg, has now raised over US$7.5 million

The startup’s fintech SaaS platform is built for the informal retail ecosystem, providing informal retail micro, small and medium-sized enterprises (MSMEs) with the tools to improve their businesses. The company leverages new digital financial services and existing distribution networks to support digital banking and supply chain financing in cash-first markets.

Nomanini, over the past year, more than doubled the number of merchants on its platform as well as increased the number of loans fourfold, underpinning the large need for financial services and supply chain financing in this traditionally underserved sector. The fintech's focus now is on cultivating more partnerships and further developing its solutions for both financial service and FMCG providers.

Vahid Monadjem, CEO of Nomanini. Image Source: BizNis Africa

According to Vahid Monadjem, chief executive officer (CEO) of Nomanini, “Nomanini continues to put the livelihoods of MSME retailers at the centre of our focus.”

“COVID-19 served to underscore the importance of these entrepreneurs for their communities as well as their lack of access to financial tools to provide resilience in this time of crisis. With FMO on board, we are looking forward to expanding our partnerships to include more like-minded financial service providers.”

Jeroen Harteveld, MASSIF fund manager at the FMO, said Nomanini’s focus on informal and unbanked merchants, including vendors, kiosk and shop holders across Africa, fitted perfectly with the mandate of the financial inclusion fund.

“Beyond Nomanini’s talented team, we believe its existing B2B partnerships are unprecedented for a fintech. We are excited to support Nomanini to scale further by leveraging FMO’s knowledge and vast network of partners in the African financial services sector,” he said.

Speaking on the Standard Bank's additional investment in Nomanini, Adrian Vermooten, chief innovation officer at Standard Bank, said it (the additional investment in Nomanini) reaffirmed its commitment to the company as well as its support for Africa’s informal retail sector.

In his words, “Being able to support the creation of wealthier and healthier communities by providing working capital to retail MSMEs is a real win for all. Our partnership is a culmination of Standard Bank and Nomanini’s shared mission: to help the informal retail trader grow.”

South Africa in Focus:

Population: 59.6 million (2019)

GDP: $369.85 billion (2019)

GDP Per Capita: $6,193 (2019)

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