OnePipe – a fintech API company has secured the sum of $3.5 million in it seed round to expand its financial services.
The round which was led by Atlantica Ventures, Tribe Capital, V&R associates, Canaan Partners, Saison Capital, Norrsken, The Fund, Two Culture Cap, Chris Adelsbach, Techstars, Ingressive Capital, Acquity, P1, Raba, and DFS Lab alongside a few angel investors.
OnePipe is also partnering with African logistics and freight company, Sendy to expand into other African countries.
Founded in 2018 by Ope Adeoye, the company’s initial objective which was to serve as an API platform for open banking but owing to low demand, it shifted to embedded finance. Embedded finance here is the seamless integration of financial services into a traditionally non-financial service. The company’s vision is to help facilitate the distribution of digital services.
OnePipe partners with non-financial institutions to help them launch and cross-sell a variety of financial services such as credit, accounts, and payments.
Per TechCrunch, OnePipe, since its business model switch to an embedded finance company, the company has processed more than 6.3 million transactions worth over $46.3 million. These figures come from over a million individual accounts and over 138 different businesses, ranging from FMCG and retail to lending and agriculture.
OnePipe takes a percentage cut of all transactions done on these accounts and splits the profit with its partner institutions. OnePipe collects at least 1% of loan interest from its lending partners and distributes it with businesses and partner banks for loans made through its APIs.
What they are saying about the seed round
Aniko Szigetvari founding partner at Atlantica Ventures said, “In our view, embedded finance is the next enabler for both traditional and financial service businesses to increase customer loyalty and revenue by offering a wide range of third-party financial products and revenue streams for their customers.”
“We made sure that before we looked into other African countries, we were going in with a customer on the ground already. We did a deal with Sendy that made them participate in this round, and we will then deploy the capital for expansion. So, as they go to Egypt, South Africa, we’ll be deploying with them and grow together.”
