SmallSmall, Nigeria’s leading property tech startup, providing access to flexible living solutions using technology in the country has raised $3m in funding to expand its operations and roll out new housing solutions.
When it launched in 2018, it set out to confront a housing problem that has impeded quality of living for decades and locked millions of Africans out of economic opportunities.
According to a report, 780 million Africans are stuck in an outdated rental system while Landlords collect rent one to two years upfront, yet they’re ravaged by high default rate and unfriendly legal systems.
The startup co-founded by Tunde Balogun, Naomi Olaghere and Pidah Tnadah now operates in Nigeria’s two biggest cities, Lagos and Abuja, 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.
In its first three years, SmallSmall generated revenue of over $5m and turned a profit in 2021.
To effectively tackle the housing challenges in Nigeria and lower the access barrier, the startup rebranded and changed the company’s name from RentSmallSmall to SmallSmall in July, 2022; retaining RentSmallSmall as a product and adding new products – BuySmallSmall and StaySmallSmall under its platform.
It has now secured a $3m funding for its Seed round ($2m equity and $1m debt) with participation from Oyster VC, Asymmetry Ventures, Vivaz Capital, Resilience17 Capital and Niche Capital. Other Individual Angels in the round include Sean Fannan of Chartboost, Adam Meghji of Universe, Jimmy Ku of Flutterwave, Samir Goel and Wemimo Abbey of Esusu, Jason Njoku of Iroko and Tunde Kara of Vendease.
The funding, it said, will support its overall vision of providing flexible, quality housing solutions and help drive its new plan to provide financing to intending home buyers.
Speaking on the overall ambition of the company, Balogun who is the CEO said the firm is set for the next phase of building on the set foundation from the last three years and consolidating on their achievements.
“We’re riding on the success of our pilot test by lowering the barrier further. We will 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.”
