PiggyVest’s story is one of my absolute faves because it started in the most Nigerian way possible—on Twitter.
Piggyvest is the first online savings and investment platform in West Africa. They launched as Piggybank.ng on the 7th of January 2016 but as a savings only platform and this went on for 3 years.
They eventually rebranded to the Piggyvest (which we all know and love today) in April 2019. I believe this name change came when their goals shifted from being a savings only platform to now an investment platform, this was because they noticed their users were withdrawing their money to go invest on other platforms.
So picture it: December 2015, someone tweets about saving ₦1,000 daily in a wooden kolo and ending the year with ₦365,000. For most of us, that’s just a cool idea. For PiggyVest’s founders? That was the seed of a billion-naira business.
They had collectively ‘failed forward’ with a couple of startups among which include; CVflash (which metamorphosed into PushCV), 500dishes, 99staff, Paroles, Household but they were currently working on PushCV which was going broke at the time and they were trying to figure out the next step.
Josh Chibueze (Piggyvest CMO) went ahead to tweet that "It's only natural to think about an online solution for this piggybank idea but then you have to really understand how Nigerians think"
After their lightbulb moment they started trying to figure out how to digitise the product and help individuals save consistently especially those who struggled with financial discipline while retaining the personal nature of the piggybank.
Safe to say that they already thought of the solution because by January Somto Ifezue (the company CEO) was ready with their MVP.
This MVP went offline after a month when they noticed some security concerns and had to tackle on some other issues. Going offline only meant new users couldn't onboard but the already existing users had their money safe.
They had to build OTP on every transaction after they got feedback from a user that someone could easily transfer money from their wallet with ease as long as the user had done a transaction prior to that one.
They also built in permissions and sorted out security and regulation laws and had to figure out who to partner with; their first partner happened to be Paystack. They then relaunched in April.
PiggyVest's initial MVP focused on addressing a single core problem: helping users save money consistently and avoid the temptation to spend unnecessarily.
The main features when the MVP launched included:
Automated Savings: Users could save small, consistent amounts daily, weekly, or monthly.
Locked Savings: The option to lock funds for specific periods to reduce impulsive withdrawals.
Simple User Interface: The app focused on straightforward navigation, making savings accessible to millennials.
Fixed withdrawal dates: To address impulse spending and enforce financial discipline.
PiggyVest prioritized a minimalist design and functionality tailored to their users' needs. The interface was clean and intuitive, ensuring ease of use.
Although this simplicity was instrumental in reducing user friction and encouraging sign-ups. Over time, the need for additional features arose, prompting continuous updates to meet growing expectations.
Over time, Piggy Vest evolved by:
Adding investment opportunities for users with an array range of rates from 14% up to 30% per annum, depending on the type of account.
Expanding its ecosystem to include features like group savings.
Increasing cybersecurity measures to enhance trust.
It's impressive to note that they currently operate on a 256 bits SSL security encryption which simply means that information on Piggyvest is protected by a super secret code so that no one can can read it except the person it's meant for.
This ensures that information is completely protected from fraud and interception, builds trust for their users and is in compliance with many security standards like PCI DSS for payment card transfers.
The company's first $12,000 was generated from PushCV (which is still running till date) and after a year they had a whooping 700 users of which half were active but they had saved 21m on the platform which was a huge deal for them.
The real explosion came when someone testified on Twitter that she bought her first car using Piggyvest. Also worthy of note that this happened in their first year.
They crossed 1,000 users sometime between Dec 31st and January 3rd. The success came so quickly they were overwhelmed as they were a whole staff of 7.
In their 2nd year; 2017, they joined an accelerator called Village Capital where two companies are chosen to receive funding, and these two companies are actually voted on by the other companies in the accelerator.
They were able to get their first $50,000 in April 2017 through the accelerator.Two weeks later in March, they had a breakfast meeting at The Wheatbaker with some angel investors who saw their potential and got $1,000,000 and also got funding from Kola Aina of Ventures Platform.
Their early problems and solutions included:
Demand outstripping supply (which I daresay is a good problem to have) - they reinvested in technology upgrades and improved their backend systems to handle increased demand efficiently.
Operating in a low-trust environment- they initially relied on referrals, offering small financial rewards for successful invites. But their organic social media buzz built a community of engaged users.
No willingness for investors to come onboard because they were a bunch of 20 somethings asking for huge amounts of money- Their angel investor Mr Olumide put himself out for them. And they also decided to go back and improve their product instead of waiting for investors.
PiggyVest's unique value proposition lies in making savings and investments accessible for Nigerians, particularly young professionals and millennials, by providing:
Automated and flexible savings plans: this means users can schedule consistent
savings in small amounts.Lock savings feature: this helps users save for specific goals by locking funds until a set maturity date.
Ease of access to investments: PiggyVest offers vetted micro-investment
opportunities, allowing users to grow their money while saving.Transparency: The app is known for its straightforward communication regarding fees, earnings, and safety.
PiggyVest's technology and design innovations focus on usability and customer engagement:
Simple, mobile design: The app ensures a minimalist interface with intuitive navigation, catering to Nigeria's mobile-savvy population.
Automated saving algorithms: The platform uses technology to automate savings, reduce manual intervention, and encourage user consistency and discipline.
Seamless integration: PiggyVest integrates with major banks for easy deposits and withdrawals.
Security features: Two-factor authentication (2FA), fraud detection systems, and robust backend architecture ensure user safety.
These features make the app accessible, engaging, and secure, and tackles common pain points in traditional savings methods.
PiggyVest's primary user persona is:
Age: 18-35 years old.
Tech-savvy and goal-oriented: Familiar with digital tools, they seek better ways to manage and grow their money.
Income level: Middle to upper-middle class, including freelancers, entrepreneurs, and professionals.
Financial goals: Savings for school fees, travel, emergency funds, house rent or even small-scale investments.
Trust-conscious: Skeptical of traditional savings systems and drawn to platforms with transparency and security.
PiggyVest's primary audience currently includes:
Millennials and Gen Z: Primarily tech-savvy individuals seeking better savings options than traditional banks.
Goal-Oriented Savers: Those interested in achieving specific financial goals, such as school fees, travel, or business investments.
Piggy Vest users share several common traits:
Financial Goals: Users are people looking for better ways to save for short- and long-term needs.
Low Trust in Traditional Banking: Many users are skeptical of traditional savings methods and want alternatives with better
transparency and control.Aspirational Mindset: They are motivated by goals like travel, education, and investments.
Chibueze said the startup's numbers can be attributed to a "first-mover" advantage, constant innovation and fulfilling it's business promise of instant access to funds on set withdrawal dates and interest rates.
It's a simple rule in business, he goes on to say, that once you fulfil your business promise and you remain consistent, people will keep coming back and referring other people.
"We grew largely by word-of-mouth marketing. In their early days they would put word out on Twitter, do direct sales marketing to "kolo" box sellers.
Odun Eweniyi (Piggyvest COO) attributes some of their growth to what can be called Skill Stacking where you have knowledge from a variety of things that complement each other, this along with their experience with other "failed" startups gave them an added advantage in the market.
She also says it's important to note that you've not lost just because you didn't win.
Their user growth statistics are as shown
Their initial market entry approach included
Their target audience: they targeted millennials who were being underserved by traditional banks for savings.
Their solution to pain point: they provided automated, goal-oriented savings plans with flexible withdrawal options to encourage financial discipline.
A customer- centric MVP
Their early on strategy also involved leveraging a referral model where users were incentivised to invite their friends, leading to organic growth. They positioned themselves as a trustworthy and user-friendly alternative to traditional banks.
They relied heavily on the power of social media by using storytelling to showcase real-life savings success stories, making the brand relatable and also sharing financial literacy resources to empower and educate users, which reinforced trust and engagement.
The takeaway from the Piggyvest journey is
Build something people actually need and like.
Utilise social media- people are often loud about their needs and pain points.
Work fast!
Word of mouth is the GOAT marketing strategy which leads us back to the first point.
I think it's impressive how you can absolutely automate saving money so you don't get the opportunity to change your mind.
While this is great, it's downside is if you have an emergency on the day you get money you then have to risk the withdrawal fee if your money is taken quote unquote without your permission.
Piggyvest has done an excellent job of sustaining their users, being consistent with their goals while allowing for flexibility of the evolution of time and simply continuing to put their customers first.
The testimonials keep rolling out on Twitter and the people simply love their product. It’s very safe to say they are keeping up with their mission - To give everyone the power to better manage and grow their finances.
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