# Sparke Microfinance Bank

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/sparke-microfinance-bank

- Industry: Financial Services
- Headquarters: Lagos, Nigeria
- Website: www.sparkle.ng
- Total disclosed funding: $3.1M
- Latest round: Seed (Oct 14, 2021)
- Investors on record: 2

## About

Sparke Microfinance Bank Limited is a financial institution based in Lagos, Nigeria, dedicated to providing innovative banking solutions tailored for personal and business financial management.Founded in 2019, Sparke Microfinance Bank Limited specializes in offering a range of financial services to individuals and small businesses. The bank has not undergone any significant pivots in its business strategy since inception. Headquartered in Lagos, Nigeria, the bank raised USD 3.1 mn in a Seed round on October 14, 2021, led by Leadway Assurance Company Limited with participation from Trium Networks. This funding marked the total amount raised by the company to USD 3.1 mn. The founder's history and previous ventures, if any, are not publicly disclosed.Sparkle Microfinance Bank offers a comprehensive suite of financial products aimed at enhancing personal and business financial management. The core offerings include Sparkle Accounts, which allow users to open accounts without documentation or long queues, and the Sparkle Stash feature, enabling individuals to save money flexibly and collaboratively. The platform also provides an analytics tool that helps users track their spending habits through detailed breakdowns of expenses. Additionally, Sparkle facilitates seamless money transfers, bill payments, and offers a physical card for secure transactions. The bank targets both individual consumers and small businesses primarily within Nigeria, aiming to simplify financial interactions through its innovative app and digital ecosystem.The revenue generation model for Sparkle Microfinance Bank is multifaceted, primarily derived from transaction fees associated with its payment services, account maintenance, and loan products. Consumers use the Sparkle platform to send and receive money, pay bills, and access loans, which generates transactional revenue. For instance, a user may transfer funds to a friend or pay utility bills through the app, with each transaction incurring a small fee. Sparkle's loan services also contribute to revenue, as clients receive quick access to funds without the need for collateral or extensive paperwork. The company's business model includes both direct-to-consumer services and potential partnerships with businesses, enhancing its revenue streams through diverse financial solutions catered to its client base.In October 2021, Sparke Microfinance Bank Limited raised USD 3.1 mn in a Seed round led by new investor Leadway Assurance Company Limited, with participation from Trium Networks and individual investors. The funding will be utilized to hire new staff and support investments across automated back-end processes and digital infrastructure. The company is also exploring the launch of new products aimed at improving user engagement and financial accessibility, though specific launch dates have not been disclosed. Furthermore, plans to expand into other regions within Nigeria are underway, enhancing their reach and service capabilities.

## Funding rounds

- Seed, Oct 14, 2021, $3.1M — Trium Networks, Leadway Assurance Company Limited

## Investors

- Trium Networks (https://capitalatlas.ai/funds/trium-networks) — Seed
- Leadway Assurance Company Limited — Seed