VENCO, a technology company that provides solutions to enhance living experiences in residential and commercial communities in Africa, has secured $670,000 in an oversubscribed pre-seed funding round.
The company says the fund will be deployed 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.
Starting with Nigeria and Kenya, the new funding 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.
The investors: The pre-seed funding 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.
Opportunities for VENCO: With growing urbanisation across Africa, multi-property developments have emerged as the preferred mode of delivering residential and commercial real estate.
According to VENCO, of the 2.5 million households in Nigeria that earn more than $1,000 per month, 80% live in multi-property communities. 25% of their income is spent on rent and 50% is spent on other household needs, including consumables, utilities, internet data, cable TV, and other services. This market for household spending represents a $22.5 billion opportunity in Nigeria and $100 billion across Africa.
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 spending along with many other services.
Track record: VENCO says it has recorded over 200% 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 e-commerce 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.
Commenting on the company’s solutions, Chude Osiegbu, CEO and co-founder of VENCO, said:
“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.”