SEC-regulated Monieworx is crowdfunding for SMEs, raises ₦100m

Monieworx, a platform where businesses can access capital from retail investors to scale their operations, has set a precedent for crowdfunding startups in Nigeria by leading its go-to-market strategy by securing regulatory approval 

Monieworx operates a debt funding model, which means that the hosted businesses will be required to pay back the crowdfunded loans at interest rates ranging from 10–12%.

Earlier this week, the company announced that it had facilitated the raise of about ₦100,000,000 ($217,155) for three businesses, in just ten days of opening the investments to its army of small-ticket retail investors.

For Monieworx, the goal is to become a powerhouse where small and medium-scale enterprises can access alternative capital for their operations. With over 40 million SMEs in Nigeria accounting for about 84% of total employment, and contributing to about half of the nation’s GDP, the importance of a crowdfunding platform that meets the SME financing gap is well demonstrated.

Over the past year, Monieworx claims to have onboarded over 42,000 users as it seeks to build a suitable “banking replacement” which will position the company as the SME-focused financier of first choice.

“SME financing is at an inflexion point. We have been presented with a once-in-a-lifetime opportunity to win customer primacy, and we intend to seize it with both hands. Owning alternative investments will become increasingly valuable,” Ali Yakubu-Concern, Monieworx’s managing director and CEO said in a press release seen by TechCabal

Regulation makes the difference

Perhaps, Monieworx’s most attractive quality is that it is a regulated entity, a feat the company choruses at every opportunity it gets. Licenced under Nigeria’s Investments and Securities Act (ISA), Monieworx became authorised and regulated by the SEC as a crowdfunding intermediary in December 2022, making it one of the pioneering crowdfunding platforms in Nigeria.