By Adedapo Adesanya
To further establish the Buy Now, Pay Later (BNPL) model in Nigeria, Lagos-based startup Klump has raised $780,000 in pre-seed funding to help it launch its flagship product with partners. selected, offering BNPL solutions to clients and businesses.
The new product name Pay with Klump will use the company’s proprietary credit eligibility and fraud detection engine to make an informed credit decision on a customer in less than three minutes, with the goal of further reducing decision time to less than a minute.
The pre-seed funding round was led by London-based investment firm Seedcamp, with participation from MAGIC Fund, Voltron Capital, Yellowwood, Kickoff Africa, Hoaq Capital, Kesho VC, Assembly Investors, as well as several investors providentials and founders.
These big names include Mr. Olugbenga ‘GB’ Agboola, CEO of Flutterwave; Will Neale, founder of Grabyo; Mr. Michael Pennington, Founder of Gumtree; Mr. Richmond Bassey, CEO of Bamboo; Mr. Babs Ogundeyi, CEO of Kuda Bank; Mr. Abdul Hassan, CEO of Mono; Mr. Opeyemi Awoyemi; and Mrs. Selma Ribica.
The funding will be used to further develop Klump’s credit decision and payment engine, build the team, develop merchant partnerships and provide affordable financing to its customers.
Speaking on the matter, the company’s co-founder, Ms. Celestine Omin, said, “Our BNPL offering is a natural next step in the development of Africa’s e-commerce sector, and we intend to be at the forefront in developing the ability to make credit decisions on customers in real time and offer flexible payments to help reduce the economic pressure of single payment which has increased astronomically since the emergence of COVID-19 .
“At the same time, we want to help merchants achieve business prosperity by providing the tools to offer their customers the ability to pay in small installments,” Ms. Omin said.
For his part, co-founder Mr. Olufunbi Falayi said Klump can quickly make sound credit eligibility decisions, facilitate transactions with approved customers, make disbursements to merchants and effectively drive collections. with customers through a flexible and efficient collection system.
“We maintain mechanisms in place to ensure that we promote responsible lending and reduce the risk of customers taking out loans they cannot repay,” he said.
Mr. Felix Martinez, an investor at Seedcamp, said he was delighted to support Klump as it laid the groundwork for democratizing new payment methods in a hugely underserved African market.
“It was clear to us from our first meeting that their respective experiences in scaling some of Africa’s most successful startups and implementing best-in-class payment solutions for large merchants e-commerce make them the perfect team to become the responsible BNPL category leader on the continent,” he said.
Klump has also partnered with AltSchool, an alternative technology academic institution, to provide laptop financing to its students, as well as Betastore, a B2B retail platform, to provide inventory financing to its retail customers.
Klump will also be rolling out other large-scale partnerships over the coming weeks, initially focusing on markets with higher-margin discretionary spending categories, such as apparel and footwear, fitness, accessories and beauty. . Klump will also focus on the education, travel and healthcare verticals.
Founded in 2021 by Ms. Celestine Omin and Mr. Olufunbi Falayi, who have combined their experience building products with Konga, DealDay, Paystack, Andela, Amazon and HEB, Klump offers customers the ability to buy and receive their purchases immediately and spread the payments over four equal instalments.