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Traction, a merchant solution platform in Nigeria, received US$6 million in seed capital to fuel development, hire more people, and improve infrastructure.
P1 Ventures was one of the investors in the seed round, which was co-led by Multiply Partners and Ventures Platform.
Businesses can now collect payments, manage their money, and get access to crucial operational tools thanks to Traction’s comprehensive one-stop platform.
Owners of businesses can collect payments through POS terminals or virtual accounts, record transactions using point-of-sale software, keep track of inventory and manage customers using CRM and loyalty programs.
The platform also provides a number of financial services, such as bill payment, merchant wallets, cash advance loans, and savings.
The Clafiya, a health tech startup in Nigeria, has raised $610,000 in pre-seed funding Central Bank of Nigeria granted Traction a license for payment solution services last year, enabling it to function as a provider of payment solutions for a range of payment categories.
“Our goal at Traction is to be the digital operating system for businesses on the continent. We want to help them digitize their operations, efficiently manage finances, and make better-informed decisions,” said co-founder Mayowa Alli.
In 2022, Traction served over 70,000 firms in Nigeria and had a 7x rise in revenue and an 8x increase in transactions.
Traction plans to explore growth outside of Nigeria over the next 18 months, either organically or through M&A, but the new capital will be focused on increasing operations in Nigeria.
