Quidroo is an online factoring platform where transactions are streamlined and SMEs get paid within 72 hours by selling their invoices to investors to get fast cash at favorable rates. Quidroo is 'women first' and focuses on SDG 9.3 Increasing the proportion of small-scale industries with access to finance in developing countries and SDG 8.3 Increasing the proportion of people with access to financial services.
At Quidroo, our long term goal is to be the premier online factoring platform in Africa that supports small and medium businesses in accessing quick, easy and transparent short term financing. Our target is to have 50,000 SMEs using our platform by 2026.
We have in the process of developing our first MVP. We currently have 2 users that support over 90 farmers and we currently operate in Abuja, Nigeria. We have not raised any external funding for Quidroo, all the funding has been from the personal savings of the co-founders.
Earlier this year, we participated in the Stellar Blockchain Bootcamp by DFS Lab to build our Stellar integration and won a prize worth of $5,000.
In 6 months, we would like to have1. Launched our MVP and on-boarded at least 1000 customers who are actively using our platform,2. Raise pre-seed funding of at least $200,000 to help us build out our product and sales team.3. Finalize registration of Lagos Money Lending License by Mar’2022.
We hope to have- a market fit product that enables withdrawal and deposit for Users in their Local Currency using Stellar path payment.- We currently have a money lending license for Abuja, and working on getting the Lagos money lending license. These lending licenses allow us to provide financial services in the major cities of Nigeria- We are looking to raise funding to expand our product development team.
According to PwC’s MSME survey of 2020, there are 17.4 million SMEs In Nigeria, and even though small and medium businesses contributed 48% of national GDP, accounted for 96% of businesses and 84% of employment, it is often difficult for them to raise working capital. The traditional method is expensive, slow and paper heavy. Also, according to The Small and Medium Enterprises Development Agency of Nigeria, 82% of SMEs fail due to cash-flow issues while waiting 30, 60 sometime 120+ days for vendor payments, yet there are trillions in A/R monthly in Nigeria.
Quidroo is an online platform where transactions are streamlined and SMEs get paid within 72 hours by selling their invoices to get fast cash at favorable rates. Our customers are the Nigerian SMEs, who find it difficult to raise working capital for their business. Our online, no collateral, invoice crowdfunding marketplace offers a fast, less expensive, secure and automated environment where transactions are streamlined and SMEs get paid faster by selling their invoices for fast cash offers at favorable rates.
Quidroo needs to be accessible not only to Nigerians but potential users all over the world. But there is the challenge of cross-border payments and local fiat currencies limitation where Investors outside Nigeria would find it difficult to fund their Quidroo wallets. Moreso, our transaction process is relatively simple and logical, however, it can be marred by the lack of real-time mechanism to track the invoice throughout the whole process journey, thus opening up the whole process to high risk of fraud, the need for manual documentation. This is very time consuming but can be avoided or mitigated using the Stellar Blockchain Technology to:
Thus, based on the above needs/solution which can be clearly met using Stellar, Quidroo can achieve her goal to optimize for quick, transparency, and efficiency of invoice financing for SMEs.
Our target market is the 17.4Million SMEs in Nigeria. The market size for our offering is $2.46 Billion as of 2020.
Our Revenue model is 3 fold:
We are currently not profitable but will be by end of year 1 if we have 2,800 customers. With average transaction size of $10,500 and Customer MoM growth rate of 10%, and an average invoice discount rate of 7%, we will achieve Net Income of $112,573K. By year 5, if we grow our client base to 274,000 customers we will achieve Net Income of $64,989,866.
Whereas bank financing has for a long time dominated global trade finance, factoring is one of the fastest-growing instruments for structured trade finance in the world. The global factoring market was valued at $2.92 trillion in 2017, according to data by Factors Chain International (FCI) – a global association of institutions offering factoring services, setting industry standards, and engaged in training and capacity-building.
According to the Managing Director for Intra-African Trade Initiative, African Export-Import Bank (Afreximbank), Africa’s factoring volumes grew from $16.8 billion in 2009 to approximately $25.17 billion in 2017. In 2018, Africa’s factoring volumes grew further by 2 per cent; but the continent accounted for only a meagre 0.8 per cent of the global value, which grew to $3.11 trillion, according to FCI. Europe dominated with 66.1 per cent share; and Asia-Pacific, 24.1 per cent. The projection is that the market will grow at a CAGR of 14.6 per cent to $9.3 trillion by 2025, according to Adroit Market Research. By 2020 the global market grew to $3.32 trillion, for Africa $31.58 billion. The serviceable market for Nigeria for 2020 is $2.46 billion
Some of the startups playing within the invoice factoring industry include Lidya, SukFin, Acudeen amongst other players. However, none of them are women businesses focused nor have a good grasp of the Nigerian Market.
Our competitive advantage include:
Quidroo is also a product of Silicon Valleys' Founders' Institutes (Lagos) pre-seed accelerator program where our solution has been vetted and validated by over 20 mentors, directors, and industry CEOs. Not only has FI provided the right structure, but they have provided the right information and training to ensure that our organization succeeds and is able to make the necessary impact in our society.
Olufunto Boroffice, CEO
Olufunto ‘Funto’ Boroffice is a Co-founder of Quidroo, a fintech startup looking at providing access to working capital for Nigeria SMEs, especially women-owned SMEs, and Chanja Datti Ltd, an award-winning waste collection & recycling social enterprise dedicated not only to transforming the waste in her environment to value. She graduated with a Masters’ degree in Financial Management from Pace University’s Lubin School of Business in New York and has a Bachelors’ degree in Accounting and Finance from Northeastern University in Boston where she graduated cum laude (with honors). She recently completed the 2020 African Women Entrepreneurship Cooperative (AWEC) and 2020 Vital Voices GROW Fellowship and sit on several boards. She has been recognized in 2021 by Global Citizen.org as one of 11 Change-making Africans that the world needs to know about, recognized by CNBC Rising Woman Africa series as one of 31 African women leaders in 2021, and was the winner of 2021 WE Empower UN SDG Challenge, with grant prize of $20,000.
Daniel Olagunju, Product Manager
Daniel is a Co-founder and Product Manager of Quidroo, a fintech startup looking to provide access to working capital for Nigeria SMEs, especially women-owned SMEs. He is also the Product Manager/Chief Technical Officer and Co-founder of WasteCoin for the past one year. Prior to that, he was the Lead Software Developer at Suneses Energy. He is passionate about making a positive impact in society, especially Nigeria and Africa at large. Over the years, he has gained valuable skills through study, volunteering and working across various job roles. Thus having over four years software development and management experience, his goal is to help build innovative, sustainable, and efficient solutions using his skills.
Oluseyi Boroffice, CSO
Oluseyi ‘Seyi’ Boroffice is a Co-founder of Quidroo, a fintech startup looking to provide access to working capital for Nigeria SMEs, especially women-owned SMEs, and Lumina Power, a utilities and renewable energy company carrying out projects in Africa and North America. He graduated with an MBA from MIT and an MPA from Harvard University and has a Bachelors’ degree in Electrical Engineering from Northeastern University in Boston where he graduated summa cum laude (with high honors). He has an extensive background in energy, utilities, telecoms, infrastructure investment and development, business evaluation, and policy analysis.
*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on July 5th as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
**The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on December 16, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on September 27, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
* The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on the date of transfer as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)