Traction raises $6M seed as Nigeria’s merchant acquiring space continues to heat up

Traction raises $6M seed as Nigeria’s merchant acquiring space continues to heat up

#fintech
#small business
#startup
#financial services
#investments
#funding
Micro, small, and medium-sized firms (MSMEs) constitute the backbone of the Nigerian economy, accounting for more than 60% of GDP growth and playing a crucial role in job creation. According to the National Bureau of Statistics, there are over 39 million such firms, and 87% operate informally, meaning they primarily receive cash and perform activities on paper.

Nigeria-based fintech startup Traction has raised $6 million in a seed round to help small businesses gain access to digital tools and financial services. Founded in 2020, Traction offers a bank-agnostic platform that allows small companies to receive payments, manage accounts, and access operational tools. The platform's end-to-end digitization includes point-of-sale software, POS terminals, virtual accounts, and additional services like merchant wallets, cash advance loans, savings, and bill payments. Traction serves two categories of merchants: classic and premium, and it has seen significant growth, serving over 70,000 businesses across Nigeria and disbursing over N2 billion in loans. With the new funding, Traction plans to accelerate its growth in Nigeria and expand its services outside the country.


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