Nigeria: Multiply Partners and Ventures Platform lead Traction's $6m seed round

Nigeria-based Traction has raised a $6 million seed round led by Multiply Partners and Ventures Platform with participation from P1 Ventures among other investors.

Nigerian SMEs, especially those in the informal sector, often face challenges in accessing credit facilities, business tools and payment solutions due to stringent conditions imposed by traditional financial institutions. Despite owning smartphones, many business owners continue to manage their operations on paper, thereby missing out on the opportunity to access formal financial services solutions. As a result, many businesses struggle to expand and capitalise on economies of scale, with some even facing liquidation despite having profitable business models.

Traction has developed a one-stop platform to address these challenges faced by businesses. It enables businesses to accept payments, manage finances, and access essential operational tools. With Traction, business owners can accept payments via POS terminals or virtual accounts, use point-of-sale software to record their sales, track inventory, and manage customers through CRM and loyalty solutions. Traction also offers a range of financial services, including merchant wallets, cash advance loans, savings, and bill payments.

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