Nigerian fintech startup Prospa is revolutionising access to financial services for micro, small, and medium enterprises (MSMEs) by offering a fully integrated digital platform tailored specifically to their needs.
With an estimated 39.6 million MSMEs in Nigeria, most of which rely on cash, spreadsheets, or informal channels like WhatsApp to manage their finances, Prospa aims to close the gap in formal financial inclusion and offer a pathway to sustainable growth and credit access.
“Many entrepreneurs are forced to mix business and personal finances because the system isn’t built for them,” said co-founder Frederik Obasi.
Co-founder Frederik Obasi says Prospa’s value lies in delivering not just a bank, but an all-in-one business partner designed for African entrepreneurs.
“We’re not just offering banking; we’re building the digital infrastructure small businesses need to grow,” he added.
Through continuous product development and community-driven initiatives like Members’ Story and Prospa Campus, the company is positioning itself as a foundational platform for small business success, and now eyeing expansion to serve African-led enterprises across the diaspora.
“There’s a huge opportunity in the African diaspora market, and we’re laying the groundwork to meet that demand,” Obasi noted.
About Prospa
Prospa is a Nigerian fintech startup founded in 2019 to simplify business banking for small and medium-sized enterprises (SMEs). The company provides an all-in-one digital platform offering tools for payments, invoicing, savings, loans, and spend management.
In 2021, Prospa raised $3.8 million in pre-seed funding and was selected by Y Combinator, gaining international visibility and access to a global network of investors and mentors.
With over 150,000 businesses onboard and growing, Prospa continues to empower African entrepreneurs with accessible financial services and smart, tech-enabled business tools.
What Are They Doing
- Simplifying Business Banking
Prospa streamlines the process of opening and managing business accounts, eliminating paperwork and lengthy approval times. Entrepreneurs can access fast, fully digital banking built around their workflow.
- Providing All-in-One Business Tools
Beyond traditional banking, Prospa offers a suite of essential tools including sub-accounts, automated invoicing, expense tracking, loan applications, and savings features, helping businesses operate efficiently and stay organized.
“Our users told us what they needed, and we built around those needs,” said Obasi.
- Supporting Growth Through Community Initiatives
With campaigns like Members’ Story and Prospa Campus, the startup goes beyond financial services to provide mentorship, storytelling, and learning support, ensuring entrepreneurs feel empowered both financially and personally.
- Empowering with Smart Digital Tools
From payments to loan management and expense automation, Prospa’s integrated platform equips entrepreneurs with everything they need to grow and scale, right from their smartphones.
- Building Trust Through Community Engagement
By prioritizing user feedback and building relationships through community programs, Prospa has fostered strong brand loyalty. Its Net Promoter Score (NPS) remains high, indicating consistent user satisfaction and trust.
“Trust has been our biggest growth engine. When small businesses see real value, they spread the word,” Obasi explained.
Why It Matters
In Nigeria, and much of sub-Saharan Africa, millions of MSMEs remain underserved by formal financial institutions. A report by the International Finance Corporation (IFC) estimates that the financing gap for MSMEs in Nigeria exceeds $158 billion.
Prospa according to experts, addresses this urgent need by offering a seamless, mobile-first platform built for African realities.
By merging banking, business tools, and community engagement, Prospa is not only making banking more inclusive, it is actively fuelling grassroots economic development, supporting job creation, and helping African enterprises thrive in an increasingly digital economy.
Talking Point
Prospa is setting a new standard for fintech in Africa by delivering tailored financial solutions to micro, small, and medium-sized enterprises (MSMEs), a sector often ignored by traditional banks.
To build on this success, Prospa should consider scaling through region-specific partnerships, developing alternative credit scoring using user data, and expanding non-financial support like business education and diagnostics.
These steps will deepen impact while strengthening its competitive edge. For other African fintech startups, the lesson is clear: build for real people, solve complex problems with simple tools, and grow through trust, not just technology.
Prospa is more than a fintech, it’s a blueprint for sustainable digital empowerment in Africa’s informal and underserved economies.
