VENCO raises a pre-seed round to help manage African properties
Summary
According to Estate Intel, a real estate data company, most people are willing to pay high premiums for quality facility management.However, in Africa, residents experiences and property owners profits are negatively affected by numerous inefficiencies due to the largely manual and paper-based process of managing these communal developments. To further scale its services, VENCO has raised $670,000 in an oversubscribed pre-seed funding round.The pre-seed funding round was led by Zrosk Investment Management, with participation from Voltron Capital, Decimal Point Ventures, Fast Forward Fund, Tayo Oviosu, Odun Eweniyi, Oo Nwoye, Desigan Chinniah, Dakar Network Angels, and Viktoria Business Angel Network.On a call with TechCabal, Osiegbu, the CEO, said that VENCO intends to use this funding to build more features such as its credit delivery infrastructure for household spending, as well as grow its presence in Kenya and Nigeria and expand into South Africa and Ghana.The size of the market available to VENCO has considerably increased over the past decade. It has also processed transactions worth over $10 million on its platform since January 2022.VENCOs business model currently relies on subscription fees that it charges for the deployment of its software solution. He shared that VENCO is already monetising this solution, as the startup helped finance the purchase of prepaid energy meters for the Primewater View Gardens estate, and the Tejuosho Market, a shopping mall.VENCOs embedded finance solution requires it to play three roles: an originator for debt, a collateral guarantor, and a collections agent. We view VENCO as both a SaaS and a financial inclusion play with a potential for strong multiplicative impact across the continent.Get the best African tech newsletters in your inbox