Procrowdy secures SEC intermediary licence from SEC

By Chisom Nwatu

Nigeria Proptech startup, Procrowdy Limited, has been licensed by Nigeria’s Securities and Exchange Commission (SEC) as a crowdfunding intermediary (CFI) company, to give credence to crowdfunding as a viable alternative investment vehicle.

Through this license, Procrowdy became the first and only platform in Nigeria  authorised to perform crowdfunding business under the rules and guidelines of the SEC.

As an SEC-licensed platform under the strict guidelines of the country’s investment regulator, Propcrowdy will be giving investors opportunities to tap into the real estate business for huge returns.

It further enhances the company’s role as an inclusionary crowdfunding investment platform that is set up to enable individuals who earn minimum wage to access and climb up the real estate investment ladder in Africa

Roland Igbinoba, Propcrowdy founder/CEO, speaking on the approval by the SEC, emphasised that success for Propcrowdy will be measured by how much they have been able to successfully democratize real estate investments within the low and medium-income category in Africa, thereby empowering them and improving their wellbeing.

“Furthermore, our contribution to net zero and the reduction in carbon emissions is of utmost importance,” he added.

In terms of Market target, Propcrowdy, said it is focusing on two main target audiences including the population of Nigerians who earn between $80 to $1,000 per month and small and medium enterprise real estate developers whose annual turnover is less than $5m.

Citing market statistics, Propcrowdy noted that over 127 million Nigerians fall into the first category, while there are over 3,600 SMEs in the second category.

Williams Omoruyi, head of product design at Propcrowdy, said the company recognises that low-income earners and small real businesses in Africa lack the financial capacity to scale.

“At Propcrowdy, we are solving the twin problem of social impact and inclusiveness for those at the bottom of the pyramid and creating wealth and economic development for small and medium-sized real estate developers,” Omoruyi added.

Incorporated in 2019 when there was no regulation for crowdfunding, Propcrowdy said it took the long and hard road to secure a crowdfunding license from SEC in order to build investor confidence.

To sustain that confidence, the company has assured that funded developers on the platform must meet Propcrowdy’s requirements of environmental, social, and governance factors alongside the security and financial metrics in the appraisal and investment decision-making process.

In 2021, Propcrowdy received family, friends and angel investments of $500,000 to enable it to procure its license and continue to build its products and required infrastructure for monitoring compliance as required by the SEC.

The round of investments was led by Proptech54,a proptech-focused accelerator programme helping to nurture and scale proptech startups in Africa.