SmallSmall, Nigeria’s leading proptech start-up, has secured $3m for its seed round funding to expand its operations and roll out new housing solutions within Lagos State and other major cities in Nigeria.
The funding allows SmallSmall to notably grow its reach beyond its current terrain, allowing buyers interested in earning rental income to have access to properties and interest-free financing. In addition, the access barrier for people vying to own properties for the purpose of residence is tremendously lowered under the umbrella of one of its products, BuySmallSmall.
SmallSmall ran a pilot test of the product in 2021 with a number of buyers who made 40% to 60% down payment while the company financed the remaining, with a payback period of 12 months. The default rate recorded during the period was zero, Balogun noted.
“We’re riding on the success of our pilot test by seeking to provide up to 80% financing to buyers, whilst the buyer will only be required to make a minimum of 20% down payment and they get a 6 years period to buyback from us at a pre-agreed price, zero interest. Our tenants who had built a good credit score with us by paying their rent on time, and our landlords who signed a 5 years contract on their listed properties can access up to 90% financing with 10% down payment and 8 years payback period”.
The startup has done over 25,000 monthly stays, has less than 7% rent default rate, saved property owners over $1.5m in damages, and saved tenants over $1.2m in brokers fees.
The startup participated in the Techstars Toronto Accelerator Program, in 2021 and was the first Africa proptech startup to be admitted into the program having received $120k as part of its pre-seed round. Sunil Sharma, the Managing Director of Techstars in Canada says "Techstars Toronto was proud to be an early investor in SmallSmall as we saw enormous inefficiencies in the experience that renters face when getting accommodation in Africa. With the early traction and multi-aspect business model, Techstars decided to make a follow-on investment and join the latest funding round."
The funding will support its overall vision of providing flexible, quality housing solutions and help drive its new plan to provide financing to intending home buyers. In addition, the funding allows SmallSmall to continue to build out its technology, as well as build partnerships with landlords, developers, property and asset managers, and other key stakeholders.
These are exciting times for us! We are about to help 100 people become homeowners before the end of 2022. You can be a part of this excitement by opting to own a rental property in Lagos. The properties have good title, they are built by reputable developers, they give high rental yield and appreciation, and to top it, you get rent guarantee up to 10 years. Don’t sleep on this juicy offer.
Visit our website for more details.
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