Black-Owned Sava Secures $2M Pre-Seed Funding To Build A Spend Management Platform For African Businesses

South African fintech startup Sava has raised $2 million to develop a spend management platform that will help African businesses manage their expenses, helping them reduce the time spent on recordkeeping and reconciliations. 

Sava CEO Yoeal Haile mentioned that the platform, which is yet to launch, will help African businesses run their financial operating systems.

It will also allow them to capture data that will enable them to stay knowledgeable about their financial health business.

Sava highlights two specific pain points businesses confront around spend management and reconciliations. One, businesses don’t have tools to enable them to control spending.

Two, business owners and their teams spend a lot of hours engaging in manual record-keeping and reconciliations and lack sufficient data to lend prudently.

It intends to make money on interchange fees on credit card transactions, subscription fees when businesses access its platform, and interest income from loans issued. It also has to upsell clients on some third-party financial products like insurance. 

The startup, which was founded this year by Baile and co-founders Federico Von Bary Landesmann and Kolawole Olajide, plans to launch its platform in Kenya in Q4 and eventually expand to other big addressable markets like Nigeria and Kenya.

According to Crunchbase, the investors who took part in the pre-seed funding round include Unicorn Growth Capital, Sherpa Africa Partners, RaiCap, Quona Capital, Ingressive Capital, CRE Venture Capital, and Breega.