Luca 📑

Setting the Scene

• Imagine trying to run a business today with only a pen and paper. 📝

• Small businesses in many parts of the world have access to numerous platforms to manage their transactions, employees, inventory, and more. 📲

• In Africa, it's a different story.

  • In fact, 73% of small and medium-sized businesses in Nigeria rely on that pen and paper to track transactions.

• Not only do businesses in Africa have limited digital solutions, but they also face inconsistent internet connection, disrupting their operations.

• This week’s company provides bookkeeping software that enables African small businesses to track finances online and offline.

In a Sentence

Luca is a bookkeeping platform that enables small businesses in Africa to track finances offline.

• Bookkeeping: Track income and expenses, log inventory, manage receipts and invoices, generate reports, and more.

• Offline: Users can continue operating when they lose internet access.

The Basics

• Industry: Business/Productivity Tool, Fintech

• Headquarters: Lagos, Nigeria (Delaware C-Corp)

• Year founded: 2022

• Employee count: 14

• Investors: Techstars Detroit, Roger Larach, Josh Bleecher Snyder

• Currently raising: Pre-seed round

• Business model: Freemium model with subscription and transaction revenue

• Entry market: Nigeria

• Early traction: 16k businesses, 65% MoM growth, $65m total annualized transaction value recorded on the platform, partnerships with licensed financial institutions

IN PARTNERSHIP WITH

• A Banksy got everyday investors 32% returns?

• We know it may sound too good to be true. But thousands of investors are already smiling all the way to the bank, thanks to the fine-art investing platform Masterworks.

• Masterworks has built a track record of 13 exits, including net returns of 10.4%, 27.3%, and 35.0%, even while financial markets plummeted.

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See important disclosures at masterworks.com/cd

Due Diligence

WHAT WE LIKE

• 🧾 A financial frontier: Nigeria's bookkeeping market is valued at $200b, yet fewer than 7% of the 37 million small businesses have embraced digital technology.

• 👨🏽‍💻 Uninterrupted: Luca differentiates from its competitors and builds stickiness by offering offline infrastructure that enables urban and rural businesses to continue operating during slow internet connectivity.

• 💰 Expansion: With plans to offer credit services, Luca will diversify revenue, build customer loyalty, and address a major pain point for African small businesses.

POTENTIAL RISKS

• 🏦 Churn challenge: Eighty percent of micro, small, and medium businesses in Africa fail in five years, which may cause higher churn and a shorter customer lifetime.

• 🏁 Competition: Luca competes with several funded African startups and leading global accounting software companies trying to win market share.

• 📚 Customer education: While Luca offers an easy-to-use product, the company must continually invest in customer education and support to help micro businesses transform their accounting operations from pen and paper.

Founder Profile

• Kunle Odebunmi, CEO: Previously founded AllBase Energy and Arnergy Solar.

Comps

• Dukka: Backed by SNR and Flexcap Ventures.

• Pastel: Backed by TLcom Capital, Global Founders Capital, Soma, and others.

• Kippa: Backed by Goodwater Capital, TEN13, Rocketship VC, and others.

• Bamba: Backed by 468 Capital, Presight Capital, Jigsaw VC, and angels.

📌 Bulletin Board.

• 💰 Crowdfunding alert: iRemedy is disrupting the $130B medical supply industry with a modern, AI-assisted marketplace, saving lives by solving critical medical supply chain shortages.*

  • Join their funding round and help bring much-needed disruption to the industry. Check out iRemedy here!

• 💥 The innovation situation:

  • This AI solution could replace Photoshop.

  • This computer has no physical screen.

  • Instagram is creating a Twitter alternative.

• 🍿 Keeping up with previous features: Paraspot, an AI property inspection platform, struck a partnership with Tokeet, a vacation rental management software.

*This is sponsored content.

🗳 Cast Your Vote

Last Week Today

• The results are in: Subscribers voted in favor of Klutch, a customizable credit card.

• Subscriber feedback: “One-time use cards are the way of the future for e-Commerce transactions.”

✍️ Written by Brett and Sam

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