PiggyVest’s CEO reveals that the company could IPO in a couple of years. This new development shows that PiggyVest could be going public in a couple of years from now. What does this mean for the company? Continue reading to find out more.
PiggyVest’s Could IPO in A Couple of Years
CEO Somtochukwu Ifueze made the announcement regarding PiggyVest’s plans to go public at an event organized by Kora, another fintech, on Thursday, April 4, 2024. While specific details about the initial public offering (IPO) are yet to be finalized, Ifueze indicated that an IPO appeared to be a more viable option compared to a sale.
The revelation came just two days after PiggyVest celebrated its eighth anniversary. Ifueze, along with three other co-founders, established PiggyVest in 2016 with the objective of digitizing savings for Nigeria’s youthful population.
Since then, the company has experienced rapid growth, amassing nearly 5 million customers and disbursing over ₦1 trillion to its users.
PiggyVest’s Foray into the Social Commerce Sector
In 2022, PiggyVest’s parent company, Piggytech, acquired Abeg, now rebranded as Pocket, as part of its foray into the social commerce sector. Pocket currently boasts over a million customers.
As the funding landscape for African startups has seen steady growth in recent years, investors are increasingly seeking exits to demonstrate the ecosystem’s maturity and validate the existing hype. However, such exits have been scarce, with many acquisitions undisclosed.
While notable exits like Instadeep’s $680 million sale and the more recent Deel acquisition have occurred, the conversation around exits often refers back to Paystack, an exit that transpired nearly four years ago.
Other Companies and Their Aspirations for an IPO
PiggyVest is not alone in its aspirations for an IPO; Flutterwave has also expressed its intentions to go public in the past two years. Although Flutterwave’s valuation surpassed $3 billion in its last funding round, PiggyVest’s valuation remains undisclosed.
PiggyVest’s Capital-Efficient Approach
Furthermore, PiggyVest has maintained a capital-efficient approach, raising less funding compared to many other fintech startups in the country. Chief Marketing Officer Odun Eweniyi hinted at this aspect while addressing founders at Techpoint Africa’s Lagos Startup Expo.
“On a tight budget, you don’t have the leeway for experiments. If you release your product into the market for free, the amount of work it takes to reorient users to pay for that product is simply not worth it.” Eweniyi stated.
Where Will the Company IPO
While Ifezue provided limited details about the IPO’s location, the Nigerian Stock Exchange (NSE) has been actively advocating for Nigerian tech firms to list domestically.
Currently, VFD Group and Chams Holdings are already listed on the exchange and have demonstrated impressive performance over the past year. However, there remains skepticism regarding the benefits for Nigerian startups that predominantly raise funds from foreign investors.
Notably, VFD Group has invested in Piggytech, the parent company of PiggyVest, as part of its $35.6 million investments in 2021.
What an IPO with Primarily Local Investors Means
An IPO with primarily local investors could potentially have a more significant impact on the Nigerian tech ecosystem than the sale of Paystack.
Such a move would underscore the idea that startups can succeed without massive cash injections and instead focus on prudent growth strategies, a philosophy embraced by both Paystack and PiggyVest. Additionally, it could reignite local investor interest in venture capital.
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