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Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering - Investment - Nairaland

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Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by lalasticlala(m): 12:49pm On Nov 24, 2021
Last year, fintech API infrastructure players came into the African tech scene, ushering in Plaid-like services to businesses and developers.

And the attention on these companies, particularly from venture capitalists, spiralled into this year, with each significant player raising large seed to Series A rounds.

OnePipe, a fintech API company with a different play from the lot, joins the list today, raising $3.5 million seed to double down on its embedded finance offering.

African impact-focused VC Atlantica Ventures, a co-lead investor in OnePipe’s $950,000 pre-seed round last year, also co-led this seed round alongside Tribe Capital and V&R Associates.

New investors Canaan Partners, Saison Capital, Norrsken (the fund of Klarna founder Niklas Adalberth), The Fund and Two Culture Cap also participated. Existing investors Chris Adelsbach, Techstars, Ingressive Capital, Acquity, P1, Raba and DFS Lab followed on with new checks, alongside a few angel investors.

There are generally three main fintech API infrastructure plays. One is data and financial accounts aggregation (Plaid, Okra, Mono, Stitch and Pngme are some players in the space).

The second focuses on embedded finance and banking as a service, where Treasury Prime, Marqeta ply their trade. The third is core open banking pioneered by the likes of TrueLayer.

OnePipe’s original game plan was to create an API gateway that connected banks and fintechs under a uniform standard, a move that would allow the company to perform core open banking.

But founder and CEO Ope Adeoye (self-described as the company’s chief plumber), on a call with TechCrunch, said upon continuous integration with these financial institutions, it became clear the company needed to pivot since it wasn’t generating many demand cycles.

And having struck partnerships with a few banks, OnePipe decided to take a step back and delve into the world of embedded finance.

Unlike open banking and data aggregation plays where a company needs to collaborate with almost every bank in the country where they operate, it’s not necessarily the case with companies offering embedded finance. That’s why OnePipe has six partner banks at the moment.

“The caveat goes like this, the moment you make a positioning play for banking as a service, all you really need is one partner bank that lets you go deep because the embedded finance [offering] is about depth and not breadth,” said the CEO.

“If you go for data aggregation or open banking in general, then you are going for breadth, not depth. So on our side, we said we’d rather go with tier two and tier three bands, where once you describe the concept to them, they get it. It powers their growth and is more valuable to them, unlike other larger financial institutions.”

By running API infrastructure on behalf of these partner banks and helping them monetize it, OnePipe works with non-financial institutions to launch and cross-sell an array of financial services such as credit, accounts and payments within their offerings.

“We raised a round last year to focus on one use case of the partnership, which was to pull together the APIs of a fixed set of banks and offer embedded banking or banking as a service play,” Adeoye asserted. “Meaning, we make it possible for non-financial institutions, or businesses in general, to offer banking services to their customers.”

So an FMCG startup, for instance, can plug into a bank’s API managed by OnePipe and begin to issue accounts to customers, allowing them to make payments off those accounts and access credit when they need it.

In the 10 months OnePipe switched up to this model, it has processed more than 6.3 million transactions worth over $46.3 million, the company said. These numbers are from over 1 million individual accounts and 138+ businesses, ranging from FMCG and retail to lending and agriculture.

OnePipe takes a percentage cut from transactions made on these accounts and shares with its partner banks. For loans offered via its APIs, OnePipe takes at least 1% of the loan interest from its lending partners and also shares it with the businesses and partner banks.

With what OnePipe has accomplished so far, Aniko Szigetvari, the founding partner at Atlantica Ventures, believes the company is not only deepening financial inclusion in Nigeria but the continent.

“In our view, embedded finance is the next enabler for both traditional and financial service businesses to increase customer loyalty and revenue by offering a wide range of third-party financial products and revenue streams for their customers,” she said.

Though OnePipe is currently only present in Nigeria, it is making its first move beyond the country’s shores to align with Szigetvari’s statement.

OnePipe is going through a strategic partnership route as Adeoye mentioned that his company made a deal with African logistics and freight company Sendy to expand into other African countries. Per the company’s statement, the plan is to “pull a Stripe-Shopify-esque tag team.”

“We made sure that before we looked into other African countries, we were going in with a customer on the ground already,” said the CEO. “We did a deal with Sendy that made them participate in this round, and we will then deploy the capital for expansion. So as they go to Egypt, South Africa, we’ll be deploying with them and grow together.”

https://techcrunch.com/2021/11/23/nigerias-onepipe-raises-3-5m-to-double-down-on-its-embedded-finance-offering/?tpcc=tcplustwitter&s=08

4 Likes

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Fahdiga(m): 12:50pm On Nov 24, 2021
Nice one but nothing works under the lifeless
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by ILoveDemMANNA: 12:58pm On Nov 24, 2021
Good one.
With One pipe you can do the following.....

Rather than a closed scheme wallet that potentially exposes you to regulatory scrutiny, you can issue actual bank accounts with some value-added benefits.

You can provide non-collateralized credit or credit at the point of payment, to your customers; underwritten by yourself or their partners.

Provision savings and investment solutions for your loyal customers, thereby consolidating your relationship with them and supporting their growth.

They also provides a standard, simple and unified API interface which combines all feature sets available across numerous providers with the ability to easily switch from one provider to the other without changing code or integration.

A the very best to these young guys that are already a force to reckon with.
I'm so happy seeing them going international.

5 Likes 2 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by mbahdi(m): 12:58pm On Nov 24, 2021
Audio money.still there keep borrowing useless country
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Golan007: 12:58pm On Nov 24, 2021
Fahdiga:
Nice one but nothing works under the lifeless

Just accept your destiny.

See those guys in the picture, they are soaring.

15 Likes 3 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by BlaqJosh: 12:59pm On Nov 24, 2021
ok
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Kingpele(m): 12:59pm On Nov 24, 2021
We must survive this clueless govt by God's help and through private innovations and ideas

2 Likes

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by ILoveDemMANNA: 1:00pm On Nov 24, 2021
Fahdiga:
Nice one but nothing works under the lifeless
These are youths just like you that came up to build a business/company.
These are youths just like you working towards their destinies, lives and future.
They don't come online to wail 24/7.
They know their future is in their hands and they go for it.

Please, go out there and get something doing to make momsy proud of you please.
That is my only advice to you.
Stop the daily and constant wailing.

If this is the way I and others were wailing during the 16 years of looting and failure while waiting for the government to do something for us, all of us won't be where we are today.
Nice Day.

14 Likes 4 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by inoki247: 1:01pm On Nov 24, 2021
ok...


Where I go submit my account number....



I pray you people don't wake up nd hear shocking policy dat will send you guys to Bankruptcy....
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by deepwater(f): 1:01pm On Nov 24, 2021
Nice
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Timekeeper: 1:01pm On Nov 24, 2021
I am bothered and I don't even understand this..

Pls kindly Check my profile.... The latest post.. I need help guys
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by qtguru(m): 1:02pm On Nov 24, 2021
Mr "Are we live" grin

2 Likes

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Nobody: 1:02pm On Nov 24, 2021
If not for APC, all these things would not happen.

We join Mannabbqgrille to thank our Darlene Daddy.

2 Likes 2 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by thebosstrevor1: 1:04pm On Nov 24, 2021
See how they use grammar to confuse every one about their business model.

How will people understand what you are offering

5 Likes

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Samiah33(m): 1:05pm On Nov 24, 2021
Nice
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by streetsoldier1(m): 1:05pm On Nov 24, 2021
these cone heads are really trying in the field of ICT. And they dont beat chest like us

4 Likes 1 Share

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Fahdiga(m): 1:05pm On Nov 24, 2021
Golan007:


Just accept your destiny.

See those guys in the picture, they are soaring.
ILoveDemMANNA:

These are youths just like you that came up to build and work towards thier destiny, life and future.
They don't come online to wail 24/7.
They know their future is in their hands.
Anyways, continue, na dere u dey so.
That is my only advice to you.
Keep wailing.
Incoherent gibberish from online miscreants

3 Likes

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Golan007: 1:08pm On Nov 24, 2021
Fahdiga:
Incoherent gibberish from online miscreants

E pain am.

7 Likes 3 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by NLPoliceWoman: 1:09pm On Nov 24, 2021
Fahdiga:
Incoherent gibberish from online miscreants
Nairaland members are correcting you and giving you good advice, but you resort to your usual insults?
It is good to know we have rules and regulations guiding this forum.

Seun, Mynd44 Justwise Dominique & the OP of the thread.
Rule 2 broken.

7 Likes 4 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Golan007: 1:12pm On Nov 24, 2021
thebosstrevor1:
See how they use grammar to confuss every one about their business model.

How will people understand what you are offering

It's not for everybody.

From what I see, they provide embedded banking services via an API.

2 Likes 1 Share

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Lisaint(m): 1:13pm On Nov 24, 2021
I heard all this Fintech companies pay their workers well
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by ILoveDemMANNA: 1:13pm On Nov 24, 2021
mbahdi:
Audio money.still there keep borrowing useless country
Stop being confused young man.
Don't let hatred for your country turn you to something else.
Wetin concern the news with the rubbish you just typed bayi?
Hatred kills faster than HIV o.
Don't let it consume you I beg you.
Nice day.

6 Likes 4 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by thebosstrevor1: 1:15pm On Nov 24, 2021
Golan007:


It's not for everybody.

From what I see, they provide embedded banking services via an API.

It is a very popular and old concept.

If you use uber and taxify and you pay for everything within the app, that is embedded finance.

Opay, carbon,Apple Pay, jumia pay, ali pay are already doing that

2 Likes 2 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by InvertedHammer: 1:16pm On Nov 24, 2021
/
Raising seed money from VCs is one thing, turning profitable is another. It could take years to break even.

I wish them luck though.

/
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by ILoveDemMANNA: 1:18pm On Nov 24, 2021
AlhajiBitcoin:
If not for APC, all these things would not happen.

We join Mannabbqgrille to thank our Darlene Daddy.
My Role models and mentors don notice you Alhaji.
U sabi person.

3 Likes 4 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Golan007: 1:18pm On Nov 24, 2021
thebosstrevor1:


It is a very popular and old concept.

If you use uber and taxify and you pay for everything within the app, that is embedded finance.

Opay, carbon are already doing that

They didn't deny that such services exist.

Sometimes it's the simplicity or security features within the application that is the selling point.

2 Likes

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by ILoveDemMANNA: 1:19pm On Nov 24, 2021
InvertedHammer:
/
Raising seed money from VCs is one thing, turning profitable is another. It could take years to break even.

I wish them luck though.
/
Hehehe grin
Good boy, dis one comport and type positively after seeing what happened to his Nairaland canceller above, with all the gbas-gbos.
Wise hammer! grin

3 Likes 2 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by Fahdiga(m): 1:22pm On Nov 24, 2021
NLPoliceWoman:

Nairaland members are correcting you and giving you good advice, but you resort to your usual insults?
It is good to know we have rules and regulations guiding this forum.
Seun, Mynd44 Justwise Dominique & the OP of the thread.
Rule 2 broken.
See who is advising others

1 Like

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by thebosstrevor1: 1:24pm On Nov 24, 2021
Golan007:


They didn't deny that such services exist.

Sometimes it's the simplicity or security features within the application that is the selling point.

That is not what they are selling.

There selling point is embedded finance. Which many fintech does already...i hope they survive and not close down.
Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by AsampeteNwaanyi(f): 1:26pm On Nov 24, 2021
ILoveDemMANNA:

Stop being confused young man.
Don't let hated for your country turn you to something else.
Wetin concern the news with the rubbish you just typed bayi?
Hatred kills faster than HIV o.
Don't let it consume you I beg you.
Nice day.
mynd44 lalasticlala Seun

Rule 2

1 Like

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by ILoveDemMANNA: 1:28pm On Nov 24, 2021
AsampeteNwaanyi:
mynd44 lalasticlaIa Seun

Rule 2

5 Likes 4 Shares

Re: Nigeria’s Onepipe Raises $3.5M To Double Down On Its Embedded Finance Offering by SmartyPants(m): 1:29pm On Nov 24, 2021
thebosstrevor1:
See how they use grammar to confuss every one about their business model.

How will people understand what you are offering

Those that need the service will surely understand it. This is a b2b application so the real consumer is already likely to be finance and tech savvy enough to get it.

But to simply it, they offer a way of extending a bank's services such that non bank institutions can leverage those services as third party vendors, and offer them to consumers just like retailers do.

3 Likes 1 Share

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