Nigerian PropTech startup VENCO lands $670K pre-seed funding to simplify rent collection and payments for residential and commercial properties in Africa
With growing urbanization across Africa, multi-property developments have emerged as the preferred mode of delivering residential and commercial real estate. Of the 2.5 million households in Nigeria that earn more than $1,000 per month, 80 percent live in multi-property communities.
In addition, these households also spend 25 percent of their income on rent and 50 percent is spent on other household needs, including consumables, utilities, internet data, cable TV, and other services. This market for household spend represents a $22.5 billion opportunity in Nigeria and $100 billion across Africa.
However, the management of these communal developments is still based on inefficient manual and paper-based processes that negatively impact residents’ experience and profitability for property owners. That’s why one tech startup is on a mission to address problems with digital solutions.
Enter Venco, a Nigerian proptech startup that automates the collection and reconciliation of all dues and payments in communities resulting in improved receipts and better margins for property owners.
Today, Venco announced it has secured $670,000 pre-seed funding round to scale its all-in-one technology platform that manages collections, service charge administration, utilities vending, visitor access, and other services associated with multi-unit property developments across Africa.
The oversubscribed round was led by Zrosk Investment Management, with participation from other strategic investors including Voltron Capital, Decimal Point Ventures, Fast Forward Fund, Tayo Oviosu (CEO of Paga), Odun Eweniyi (COO of Piggyvest), Oo Nwoye, Desigan Chinniah, Dakar Network Angels and Viktoria Business Angel Network.
The new capital injection will support VENCO to build out its credit delivery infrastructure for rent and household spending, as well as its expansion into other cities and countries on the continent.
Co-founded by Chude Osiegbu (CEO), Reagan Mbitiru (CTO) and Uzochukwu Alor (COO), VENCO automates the collection and reconciliation of all dues and payments in communities resulting in improved receipts and better margins for property owners. For residents, self-service tools provided by VENCO make processes such as visitor control, issue and emergency management as well as utilities-vending more seamless. With residents able to build an economic profile based on their financial transactions on the VENCO platform, they can now access a range of embedded financial services, including insurance, credit facilitation for rent, service charges and household spend along with many other services.
VENCO has recorded over 200 percent growth over the last 9 months and is currently in 6 cities and more than 12,000 property units across Nigeria and Kenya. Since January 2022, it has processed more than $10 million in transaction value via its platform. The company is also partnering with eCommerce platforms to enable easier access to merchants within and around the community, energy companies to ensure reliable energy metering and collections, and other service providers to improve the overall experience in these communities.
According to Chude Osiegbu, CEO and co-founder of VENCO, “the manual nature of many processes associated with life in residential and commercial communities in Africa presents many issues that we believe technology can fix. Beyond this, we also want to leverage technology to deliver new services and experiences that will transform how people live in Africa’s growing cities and create better value for everyone across the board. Our goal is to deliver technology solutions that will enhance living experiences across the continent, and we are excited to have raised these funds to support that mission”
Samson Esemuede, Managing Director, and Chief Investment Officer at Zrosk Investment Management said “The team at VENCO are building a platform that allows for the validation of the GDP of the African household. Not only does a platform like VENCO allow for significant improvement in the experience of African residents, facility managers, and property owners, but it could also potentially unlock at scale the sort of financial services the African consumer really needs. We view VENCO as both a SAAS and a financial inclusion play with a potential for strong multiplicative impact across the continent. We are excited to support the VENCO team in achieving their vision.”