VENCO, a technology company that provides solutions to enhance living experiences in residential and commercial communities in Africa, has disclosed that it secured $670,000 in an oversubscribed pre-seed funding round in a statement, as seen by Technext.
Venco’s solutions simplify everyday processes from bill payments and visitor access to issues management, utilities vending and more, reducing the cost-of-service delivery and increasing convenience. Its all-in-one technology platform helps property owners, property managers and residents to run their communities sustainably and with minimal stress.
The funds raised will help Venco to scale its platform that manages collections, service charge administration, utilities vending, visitor access and other services associated with multi-unit property developments across Africa.
Starting with Nigeria and Kenya, the latest funding will support Venco to build out its credit delivery infrastructure for rent and household spend, as well as expand into other cities and countries on the continent.
The pre-seed funding round was led by Zrosk Investment Management. Other strategic investors who participated in the funding round include; Voltron Capital, Decimal Point Ventures, Fast Forward Fund, Tayo Oviosu (CEO of Paga), Odun Eweniyi (COO of Piggyvest), Oo Nwoye, Desigan Chinniah, Dakar Network Angels and Viktoria Business Angel Network participated.
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Venco’s impact in Africa
With growing urbanisation across Africa, multi-property developments have emerged as the preferred mode of delivering residential and commercial real estate. Of the 2.5 million households in Nigeria that earn more than $1,000 per month, 80 per cent live in multi-property communities. 25 per cent of their income is spent on rent, and 50 per cent is spent on other household needs, including consumables, utilities, internet data, cable TV and other services.
This market for household spending represents a $22.5 billion opportunity in Nigeria and $100 billion across Africa.
However, with managing various aspects of life in these communal developments being largely manual and paper-based, many inefficiencies negatively impact residents’ experience and profitability for property owners.
For example, the default rate on service charge collection for multi-property developments in Africa can be as high as 60 per cent, which means that property managers are either out of pocket or forced to operate on insufficient funds. Even when payments are collected, the manual process means reconciliation is error-prone, and theft is common.
Co-founded by Chude Osiegbu (CEO), Reagan Mbitiru (CTO) and Uzochukwu Alor (COO), VENCO automates the collection and reconciliation of all dues and payments in communities resulting in improved receipts and better margins for property owners.
For residents, self-service tools provided by VENCO make processes such as visitor control, issue and emergency management as well as utilities-vending more seamless. With residents able to build an economic profile based on their financial transactions on the VENCO platform, they can now access a range of embedded financial services, including insurance, credit facilitation for rent, service charges, and household spend along with many other benefits.
VENCO has recorded over 200 per cent growth over the last nine months and is currently in 6 cities and more than 12,000 property units across Nigeria and Kenya. Since January 2022, it has processed more than $10 million in transaction value via its platform.
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The company is also partnering with e-commerce platforms to enable easier access to merchants within and around the community, energy companies to ensure reliable energy metering and collections, and other service providers to improve the overall experience in these communities.
According to Chude Osiegbu, CEO and co-founder of VENCO,
“the manual nature of many processes associated with life in residential and commercial communities in Africa presents many issues that we believe technology can fix. Beyond this, we also want to leverage technology to deliver new services and experiences that will transform people’s lives in Africa’s growing cities and create better value for everyone across the board.
Our goal is to deliver technology solutions that will enhance living experiences across the continent, and we are excited to have raised these funds to support that mission.”
Samson Esemuede, Managing Director and Chief Investment Officer at Zrosk Investment Management, said, “The team at VENCO are building a platform that allows for the validation of the GDP of the African household.”
“Not only does a platform like VENCO allow for significant improvement in the experience of African residents, facility managers and property owners, it could potentially unlock at scale the sort of financial services the African consumer needs.”
“We view VENCO as both a SAAS and a financial inclusion play with a potential for strong multiplicative impact across the continent. We are excited to support the VENCO team in achieving their vision”.
For more information, please visit: Venco Africa
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