By Adedapo Adesanya
Nigerian property technology startup, SmallSmall, has secured $3 million ($2 million equity and $1 million debt) in seed funding to expand its footprints in Nigeria.
SmallSmall lets landlords access quality tenants and curb defaults by receiving monthly payments where they receive extra margins of about 10-15 per cent.
The round was led by Oyster VC, Asymmetry Ventures, Vivaz, and Niche Capital. Meanwhile, individual angels such as Sean Fannan of Chartboost, Adam Meghji of Universe, Jimmy Ku of Flutterwave, Samir Goel and Wemimo Abbey of Esusu, Jason Njoku of Iroko, and Tunde Kara of Vendease participated.
The company announced that with the new injection, it plans to penetrate other main cities in Nigeria, including Port Harcourt, Enugu, and Jos, before the end of the first quarter of 2023.
Speaking on this, Mr Tunde Balogun, co-founder of the startup, said, “We started by understanding the pain points of landlords. Even though they collected rent one year upfront, the default rate of the yearly system is very high because when people’s finances take a hit, they might not be able to pay subsequent rent.”
“The legal process of evicting tenants where they’ll have to wait six to 12 months is also not supportive of the landlords,” he added.
He explained that the firm also wants to use this new investment to support its vision of providing flexible, quality housing solutions and financing to intending home buyers.
“When we look at the fundamentals of housing as a basic human need, it’s not just when people have access to homes but also in home ownership.
“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.”
In addition, the startup will continue building its technology and partnerships with landlords, developers, property and asset managers, and other key stakeholders.
Formerly RentSmallSmall, the Lagos-based startup claims to give renters access to monthly rent payments while offering landlords a way to vet tenants.
Mr Balogun co-founded the startup with Naomi Olaghere and Pidah Tnadah in 2018. It announced that it has processed over 25,000 monthly stays across Lagos and Abuja and has a 7 per cent rent default rate, saving property owners over $1.5 million in damages and tenants over $1.2 million in broker fees.
