Cashia

The specific problem that Cashia aims to solve is the limited access to financial services for low-earning SMEs in Nigeria, which is a common problem in many developing countries. According to the World Bank, only 40% of Nigerian adults have access to formal financial services, and many small businesses are excluded from these services due to high fees and other barriers.

Cashia's solution addresses this problem by offering affordable POS leasing services, which can help SMEs accept digital payments and track sales data. By doing so, Cashia's solution contributes to the United Nations Sustainable Development Goals of promoting inclusive economic growth, reducing poverty, and building resilient infrastructure.

The scale of the problem in Nigeria is significant, with an estimated 41.5 million SMEs, accounting for over 90% of all businesses and contributing around 50% of the country's GDP. However, only a small percentage of these businesses have access to formal financial services, and many rely on cash transactions, which can be inefficient and insecure.

Globally, the problem of financial exclusion is widespread, with an estimated 1.7 billion adults worldwide lacking access to formal financial services. The factors contributing to this problem include high fees, lack of infrastructure, and limited financial literacy among low-income individuals and SMEs. Cashia's solution addresses these factors by offering affordable and accessible financial services, helping to improve financial inclusion and promote economic growth.

Cashia is a Nigerian fintech company that offers affordable point-of-sale (POS) leasing services to low-earning small and medium-sized enterprises (SMEs) to accept digital payments and track sales data.

Cashia's POS solution is a physical device that allows merchants to accept payments from customers using debit cards, credit cards, and mobile wallets. The device connects to the internet via a SIM card and has a touch screen interface that enables merchants to view transaction history and generate reports on their sales.

Cashia's POS leasing model is designed to be affordable and accessible for SMEs, who often lack the resources to purchase expensive POS systems outright. The company offers flexible payment plans and requires minimal documentation, making it easier for SMEs to sign up and start accepting digital payments.

Cashia's solution is built on a combination of hardware and software technology, including point-of-sale hardware, secure payment processing software, and data analytics tools. The company also leverages mobile technology to reach SMEs in remote areas, where traditional financial services may be inaccessible.

Overall, Cashia's solution aims to address the problem of financial exclusion by offering low-cost, accessible POS leasing services that enable SMEs to participate in the digital economy and build financial resilience.

Cashia's solution serves low-earning small and medium-sized enterprises (SMEs) in Nigeria, who are currently underserved by traditional financial services. This target population includes businesses in a wide range of sectors, such as retail, transportation, and services, that often rely on cash transactions due to limited access to digital payment infrastructure.

By offering affordable POS leasing services, Cashia's solution enables low earning SMEs to accept digital payments and track sales data, improving their financial inclusion and providing a range of other benefits. Specifically, Cashia's solution can help SMEs to:

1. Increase sales: By accepting digital payments, SMEs can attract more customers and increase sales, as many consumers prefer the convenience and security of digital transactions as a result of limits set by the Central Bank of Nigeria on cash withdrawals at banks. Many Nigerians now do not have access to much cash and prefer to pay digitally at shops.

2. Access credit: By using Cashia's POS system to track their sales, SMEs can generate credit history that can be used to access loans and other financial services in the future unlike when they only sell and accept cash payments.

3. Improve business efficiency: Cash transactions can be time-consuming and error-prone, while digital payments can streamline transactions and reduce the risk of fraud.

Overall, Cashia's solution has the potential to make a meaningful impact on the lives of SMEs in Nigeria, by providing them with access to affordable and accessible financial services that can improve their financial inclusion and support their long-term growth and success.

My name is Ayodeji Odesola, I am the team lead for Cashia and I am a "trenches guy," as we usually refer to people who grew up in or around poor neighborhoods here in Nigeria. I didn't grow up around rich neighborhoods like Lekki in Lagos or Ikoyi but spent most of my life with low earning small and meduim business owners who hugely are financially excluded and accept only cash payments. 

Recently, the Central Bank of Nigeria decided to change the Nigerian naira noted to a new note and cut the amount of cash withdrawals at banks to improve cashless payments. This caught many small merchants who were not equipped to accept digital payments unaware and many were not able to sell. This led to a large outcry by the citizens and the CBN has now extended the deadline for the cashless policy till December 31, 2023.

At Cashia, we have been engaging smaller merchants on the benefits of accepting mostly digital payments as against cash only and the response is that for most of them that deal in agricultural products, they need the cash to pay at local farms as the farmers are not equipped to accept transfers or card payments. We have decided at Cashia to not stop until all Nigerian businesses are empowered to accept digital payments.

We are currently serving just 10 merchants because after we developed the software, we were only able to raise money to procure 10 terminals which was used to test in the market

We are applying to Solve for a couple of reasons:

• Funding and support: We believe Solve provides an opportunity for innovative startups like Cashia to access funding and non-monetary support, such as mentorship, networking opportunities, and exposure to potential investors.
• Collaborations and partnerships: Solve provides a platform for Solver teams to connect with potential partners and collaborators, including other startups, corporations, and non-profits, who can help them scale and expand their impact. We want to develop a solution that allows merchants to accept card payments with only the tap of the card on a smartphone using NFC and we are open to connecting with partners who can help us with that solution.

Cashia's solution is innovative in several ways:

1. Affordable POS leasing: Cashia offers affordable point-of-sale (POS) leasing services to low-earning SMEs, which addresses a critical barrier to entry for small businesses in Nigeria. By providing affordable leasing options, Cashia is making it easier for SMEs to access the technology they need to accept electronic payments and track sales data.

2. Focus on low-income communities: Cashia is specifically targeting underserved communities, such as low-income neighborhoods and rural areas, where traditional financial services are often unavailable or too expensive. By serving these communities, Cashia is helping to bridge the digital divide and increase financial inclusion.

3. Data-driven insights: Cashia's POS devices provide real-time data on sales transactions, which can help SMEs make better-informed business decisions. This data can also be aggregated and analyzed to provide insights into consumer behavior and market trends, which can help drive broader economic growth and development.

4. Scalable business model: Cashia's business model is designed to be scalable and replicable, which means it has the potential to create significant positive impacts in Nigeria and beyond. As Cashia expands its operations and reaches more SMEs, it can help catalyze broader positive impacts by driving economic growth, job creation, and financial inclusion.

Cashia's impact goals for the next year and the next five years are as follows:

Next year:

• Deploy 10,000 POS devices to SMEs in underserved communities across Nigeria.
• Process $50 million worth of transactions through Cashia's POS devices.
• Provide training and support to 5,000 SMEs to help them effectively use the POS devices and leverage the data insights provided by Cashia.
• Partner with at least one financial institution to offer affordable financing options for SMEs to lease the POS devices.

Next five years:

• Deploy 100,000 POS devices to SMEs in underserved communities across Nigeria, Ghana, and Kenya.
• Process $500 million worth of transactions through Cashia's POS devices.
• Provide training and support to 50,000 SMEs to help them effectively use the POS devices and leverage the data insights provided by Cashia.
• Expand product offerings to include additional financial services, such as loans and insurance, to further support SMEs.
• Form partnerships with at least five financial institutions to offer affordable financing options for SMEs to lease the POS devices.

To achieve these impact goals, Cashia will focus on the following strategies:

• scaling operations to reach more SMEs in underserved communities across Nigeria and beyond.
• continuously improving the user experience of the POS devices and the quality of the data insights provided to SMEs.
• Investing in marketing and outreach efforts to increase awareness of Cashia's services and the benefits of accepting electronic payments.
• Developing and fostering strategic partnerships with financial institutions and other key stakeholders in the fintech ecosystem to drive innovation and scale impact.
• Leveraging technology and data analytics to optimize operations and improve the efficiency and effectiveness of Cashia's services.

Cashia is measuring its progress toward its impact goals through a combination of qualitative and quantitative measures, including:

1. Customer feedback surveys: regular surveys to gather feedback from customers on their satisfaction with our services, as well as any suggestions for improvement

2. Sales data: tracking of sales data to monitor growth and expansion over time

3. Impact metrics: metrics to measure progress towards the impact of the solution on their business, such as the number of low-income individuals and small businesses served, the amount of financial inclusion created.

4. Market analysis: Cashia conducts market analysis to track the growth of the fintech industry in Nigeria and identify areas for improvement and innovation.

By using a combination of these methods, Cashia is able to measure its progress towards its impact goals, identify areas for improvement, and continually iterate and improve its services.

Cashia's theory of change is based on the following assumptions and logic:

Assumptions:

1. Many low-income individuals and small businesses in Nigeria lack access to affordable payment solutions, hindering their ability to grow and succeed.

2. The expansion of affordable payment solutions will increase financial inclusion, creating economic opportunities and empowerment for marginalized communities.

3. The use of technology and innovative solutions will help overcome barriers to access and affordability.

Logic:

1. By offering affordable POS leasing services to low-earning SMEs, Cashia enables them to accept payments and track sales data, increasing their potential for growth.

2. This increased growth will create employment opportunities and economic empowerment for marginalized and underserved communities.

3. By leveraging technology and innovative solutions, Cashia can expand its services and reach more low-income individuals and small businesses, promoting financial inclusion and reducing poverty in Nigeria.

Cashia's core technology is a cloud-based Point of Sale (POS) software that enables small and medium-sized enterprises (SMEs) to accept card and digital payments. The software is compatible with a wide range of payment methods, including debit and credit cards, bank transfers, and mobile money. The solution is designed to be easy to use and requires minimal technical expertise, making it accessible to a wide range of SMEs.

The software is hosted on secure servers, ensuring that sensitive payment data is protected and transactions are processed securely. Cashia also offers affordable POS leasing services to SMEs who may not have the financial resources to purchase their own equipment. This leasing model allows SMEs to access the benefits of digital payments without incurring significant upfront costs.

Cashia's technology also includes a real-time sales tracking and reporting dashboard, which allows business owners to monitor their sales and inventory in real-time, enabling them to make data-driven decisions that can improve their operations and increase revenue.

At Cashia, we recognize the importance of diversity, equity, and inclusivity (DEI) in all aspects of our work. We strive to create an inclusive culture where individuals from all backgrounds and identities feel welcome, valued, and supported. Here are some of the ways we approach incorporating DEI into our work:

1. Diversity in Hiring: We actively seek to recruit and retain a diverse workforce. We do not discriminate based on race, gender, ethnicity, sexual orientation, religion, or any other personal characteristic. We also work to ensure that our hiring processes are free from bias and discrimination.

2. Training and Education: We provide regular training and education to our employees on topics related to DEI. This includes workshops on unconscious bias, microaggressions, and inclusive language.

3. Inclusive Policies and Practices: We have developed and implemented policies and practices that promote equity and inclusivity. This includes flexible work arrangements, employee resource groups, and an open-door policy for employees to voice concerns and suggestions.

4. Community Engagement: We engage with and support the communities we serve. This includes partnering with local organizations and businesses, supporting events and initiatives that promote DEI, and giving back through charitable donations.

5. Continuous Improvement: We regularly review and assess our practices and policies to identify areas where we can improve and promote greater diversity, equity, and inclusivity in our work.

Cashia's business model is based on generating revenue from the leasing fees charged to SMEs for the use of our POS machines. We provide flexible payment plans that allow the SMEs to pay for the POS machines over time, and we also charge a transaction fee on each sale processed through the machine. This revenue stream allows us to cover our costs, including the acquisition and maintenance of the POS machines, while also generating profits. In addition, we may explore partnerships with financial institutions and other companies to offer additional financial services to our customers and generate additional revenue.

Cashia's plan for becoming financially sustainable involves a combination of revenue generation, cost management, and strategic partnerships. Our primary revenue stream comes from the leasing fees charged to SMEs for the use of our POS machines, as well as the transaction fees we charge on each sale processed through the machine. We will continue to focus on expanding our customer base and increasing our transaction volume to generate more revenue.

In addition to revenue generation, we are also focused on cost management. We will strive to keep our costs as low as possible by optimizing our supply chain, negotiating favorable contracts with suppliers, and adopting efficient operational processes.

Furthermore, we plan to leverage strategic partnerships with financial institutions and other companies to offer additional financial services to our customers and generate additional revenue. This could include partnerships with banks to offer loans and other financial products to our customers, as well as partnerships with other companies to offer complementary services such as marketing or inventory management.

Overall, our goal is to build a financially sustainable business that can continue to grow and serve the needs of our customers in the long term.

As a startup, Cashia is still in the early stages of achieving financial sustainability. However, we have already taken some steps towards achieving our goal.

Firstly, we have been successful in generating revenue through our leasing and transaction fees. We have built a base of loyal customers who value our affordable and convenient POS leasing services, and we have seen steady growth in our transaction volume over time.

Secondly, we have been focused on cost management to ensure that our expenses are as low as possible. We have negotiated favorable contracts with suppliers to minimize our equipment and operational costs, and we are constantly looking for ways to streamline our operations to reduce our overhead.

Lastly, we have begun exploring strategic partnerships with financial institutions and other companies to offer additional financial services to our customers and generate additional revenue. For example, we are currently in discussions with a local bank to offer loans to our customers, which would enable them to expand their businesses and generate more revenue through increased sales.

While we still have a long way to go in achieving financial sustainability, we believe that these initial steps have put us on the right path towards building a successful and sustainable business.