Apps4Africa 2011 Winner Eric Mutta, founder of Minishop (formerly ‘The Grainy Bunch’), has just closed a $328,000 financing round from Financial Services Deepening Trust [FSDT – http://www.fsdt.or.tz. The deal was part of a competitive SME Finance Innovation Challenge Fund, in which Eric’s company defeated 13 companies to emerge the victor.
The objective of Minishop is improve the way small & medium sized enterprises (SMEs) keep financial records by providing them with an affordable and user-friendly accounting package called Minishop. Better financial records make it easier to apply for loans that can be used to grow the business, increase employment and contribute to government revenues. In Tanzania, of the 130,000 SMEs that should keep electronic financial records, only 900 currently do so (i.e. less than one percent). Eric will use the funds to close this gap, by hiring 7 employees and purchasing 500 laptops to be bundled and sold with Minishop and other supporting systems for mobile payment collection. This ratio is surprisingly consistent throughout most other African countries so there’s a lot of opportunity for Eric’s solution to grow.
“Apps4Africa will forever remain the event that got the ball rolling,” Eric Mutta exclaimed earlier today.
Eric Mutta took home $15,000 in 2012 competition alongside Farmerline, who coincidentally announced funding from IndigoTrust last December.