Poster that reads "Welcome to Pivo

Pivo's Shutdown: The Fallout of Cofounder Disagreements

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Published on: September 28, 2024

Pivo Technology Inc. was a Nigerian-based fintech startup launched in 2021. The company, headquartered in Yaba, Lagos, sported a staff size of 11–50 employees, headed by Nkiru Amadi-Emina (CEO) and Ijeoma Akwiwu (COO).

Pivo offered financial services to African small and medium-scale businesses (SMEs) on three fronts: Pivo Capital, Pivo Business, and Pivo Plus. Their core services included credit loans, expense management for SMEs within supply chains, and insurance services, respectively. Customers were granted adequate credit funding based on provided data and previous transaction history without collateral. Business owners could access Pivo’s services by setting up a corporate account on their application.

Pivo Capital offered credit loan services to SMEs, while Pivo Business, also known as Pivo Finance, helped them set up digital bank accounts. These were subsequently used to facilitate P2P transactions and monitor payments made with debit cards. Revenue was generated mainly by charging interest on approved loans and by charging fees on transactions made on the application.

In recent times, the Nigerian tech ecosystem has witnessed a significant rise in the launch of fintech startups aimed at providing better services than traditional banking institutions. Supported by increasing internet activity and the use of digital devices, they have acquired licenses to compete fairly with existing corporations in the financial sector.
The rise of fintech startups like Pivo was due to the CBN’s open banking policy launched in 2023. It provided an avenue for financial inclusivity, leading to competition and the launch of innovative ideas.

The Business Model of Pivo

Pivo’s mobile app was released in 2022 on the Google Play Store and Apple Store. Users were required to download the app and complete the necessary KYC to successfully sign up for a Pivo Business account. The app allowed them to make payments, request financial history, and generate account statements. It also allowed them to apply for Pivo Capital business loans, view loan requests, and place requests for customised debit cards.

The app promised ease of use, with easy navigation across pages and similar functionality to traditional banking apps and neobanks like Opay. With over 5,000 downloads and a 4.6/5 rating, users dropped excellent reviews on its assistance in expense management.

Pivo shielded customers from the rigorous processes associated with obtaining loans at traditional banks. They also tackled SMEs' cash flow problems by providing access to smart bank accounts, debit cards, and digital invoicing tools to track payments. Pivo implemented this end-to-end financial model with freight carriers and companies offering logistics services.

Compared to Fairmoney and Brass, other financial lending institutions, Pivo has an interest rate of 11%; Fairmoney’s rates range from 2.5% to 30%, while Brass’ rates start at 9.75%. Although Pivo has a higher interest rate, Fairmoney and Brass are focused on providing credit loans for individuals.

Pivo’s Funding Trajectory