Nigerian proptech company, SmallSmall has stated that Jos city alongside Port Harcourt and Enugu is in its expansion for Q1 2023 following a seed raise of $3 million.
Why it matters:
The city of Jos is faced with rapid urbanization and the inadequate capability to cope with it. This has made homeownership in the city a challenge.
SmallSmall however, intends to challenge this rapid urbanization, utilizing it as an improvement of the economic status of the state. This, according to Tunde Balogun, co-founder of SmallSmall, is a means of generating passive income.
“Homeownership can improve the economic status in one way or another because it generates passive income for people to meet other needs. So we want to play a part in that and help young people in their journey from renting to investing to eventually buying real estate”, he said.
Furthermore, with SmallSmall processing over 25,000 monthly rents across Lagos and Abuja, it will expand its 7% rent default rate, saving property owners over $1.5 million in damages and tenants over $1.2 million in broker fees for the residents of Jos.
Addressing the monthly payment plan for SmallSmall users, Balogun stated that following their test in Lagos, their target is to persons around 28 years and with this, it would expand their reach into Jos and other cities.
“Our market is for young professionals with an average age of around 28 years. It’s a huge market. Lagos was our test point which showed 80% out of the 3000 persons pay their rent monthly, with this theory, we can push for more adoption in Jos, Port Harcourt and Enugu”, he said.
About the Company
- SmallSmall was founded in 2018 by Tunde Balogun, Naomi Olaghere and Pidah Tnadah. The company is built to provide affordable and efficient housing in Nigeria.
- Since its launch, the proptech has over 476,000 people registered on its platform, its business model enables teners to make monthly rent payments and offers landlords a system to vet tenants, increase their income and manage properties.