Streamlining Financial Management for African Businesses: The Rise of Bujeti

Managing finances in African businesses often resembles a complicated jigsaw puzzle. Entrepreneurs frequently juggle various tools—accounting software, budgeting apps, banking solutions, payroll systems, and numerous Excel sheets. This fragmented approach leads to missed opportunities and inefficiencies, making it challenging for organizations to maintain tight control over expenditure and financial health.

The Current State of Business Finances in Africa

Despite the notable growth of fintech across Africa, the majority of advancements have been in consumer payment solutions. In stark contrast, tools designed for comprehensive finance management tailored to businesses remain limited. A market valuation in 2024 indicated that the Middle East and Africa’s digital business finance tools stood at around $701 million. However, adoption rates reveal a concerning statistic: only 15% of African enterprises utilize online accounting tools.

Opportunities in Business Fintech

In 2021, Cossi Achille Arouko, a Beninese tech entrepreneur and former Paystack employee, recognized this gap. Initially envisioning a personal finance app that connected bank accounts for real-time spending and transaction tracking, he pivoted to focus on business solutions after receiving interest from business leaders. In 2022, teaming up with Samy Chiba, previously at Ariane Space, Arouko launched Bujeti, a platform dedicated to addressing African businesses’ financial management challenges.

What Bujeti Offers

Bujeti leverages digital payments and corporate cards to automate expense management, budgeting, and team oversight. The platform is designed to create financial coherence for businesses by allowing management to issue cards to key personnel, enforce spending policies, process bulk payments, and handle multi-currency transactions.

As the startup gathered momentum, Arouko and Chiba devoted themselves full-time, with Arouko assuming the role of CEO and Chiba as COO. A significant turning point occurred in December 2023 when Bujeti raised $2 million in seed funding, primarily led by Y-Combinator.

Addressing Financial Management Issues

According to Arouko, the primary challenge for many companies lies in inefficient finance management. Although options are plentiful in consumer finance, there is a stark absence of tailored solutions for businesses. Current solutions mainly facilitate money movement, neglecting the overarching need for comprehensive financial management.

Bujeti simplifies finance operations for small and medium-sized enterprises (SMEs) by centralizing management tasks such as reporting, invoicing, procurement, and spending analysis. Through the platform, companies can set spending limits, automate approvals, and gain real-time transaction visibility—all in a unified system.

A Comprehensive Fintech Solution

Launched in 2022, Bujeti offers a user-friendly web application for finance teams to streamline operations, monitor spending, and manage approvals efficiently. The platform is currently expanding to include a mobile app, designed as a B2B super app, set to launch by the end of October 2023. This mobile offering is designed to enhance accessibility for financial teams, staff, and other stakeholders.

Seamless Onboarding Process

Businesses can quickly sign up for Bujeti by providing necessary documentation to meet compliance regulations laid out by the Central Bank of Nigeria (CBN). This process allows businesses to onboard employees, vendors, and other participants into their accounts, enabling corporate card issuance and customized permission settings to adhere to finance policies.

Bringing Vendors into the Fold

Adding vendors to a company’s account facilitates collaboration, as both parties can track transaction statuses in real time. “Everything you do automatically reflects on their side,” Arouko notes. This feature further streamlines payment processes, significantly reducing repetitive payment reminders.

Pricing Structure and Revenue Model

Bujeti generates revenue through user subscriptions and transaction fees. The basic plan costs ₦10,000 ($6.7) monthly, while the pro plan is priced at ₦20,000 ($13.4), with customizable options for larger teams.

Successful Case Studies

Seyi William-Ogunbiyi, COO of Selar, noted that Bujeti has revolutionized his company’s budgeting and expense management processes. Prior to adopting the platform, his team struggled with navigating various banking solutions to complete their financial tasks. Now, Bujeti’s bulk upload feature expedites reimbursement processing, highlighting the advantages over traditional internet banking methods.

Advanced Features Powered by AI

Bujeti is not just about expense management; its AI-driven features automate accounting functions and flag anomalies. It enhances the enforcement of company policies by interpreting uploaded documents like employee handbooks or spending guidelines, ensuring compliance in a way that avoids human error.

Transaction Approval Process

Each transaction undergoes an automated approval chain, ensuring oversight before any funds are disbursed. Furthermore, vendors added to an account gain visibility of the same financial transactions, minimizing the likelihood of unnecessary payment queries.

Future Expansion Plans

Though Bujeti currently supports transactions in Nigerian naira, Kenyan shillings, and US dollars, the founders are actively planning to expand into Ghana and francophone markets like Benin. They also aim to incorporate additional currencies such as the Euro and the Pound Sterling, with multi-currency functionalities already established within their system.

Overcoming Regulatory Challenges

Navigating regulatory frameworks remains one of Bujeti’s greatest hurdles as it aims to expand. The startup is working on meeting the legal requirements for new market entries and establishing strategic partnerships with local entities like the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and fintech company Paystack to aid this process.

Conclusion: A Vision for the Future

Arouko envisions Bujeti becoming a leading financial management solution across Africa. In the next five years, the goal is to rank among the top three tools that companies rely on for managing their finances efficiently.

With Bujeti’s comprehensive approach to financial management, African businesses can finally have the unified, effective solution they’ve been seeking, paving the way for better budgeting, expense tracking, and overall financial health.

In conclusion, as fintech solutions like Bujeti challenge the status quo, the firm is poised to fill the glaring gaps in the market and empower businesses to run financially smart operations.