Nigerian fintech startup Arich is revolutionising the traditional thrift system prevalent in the country by digitising and streamlining the savings process for retailers and local traders.
Formed in 2021 by David Chijioke, Awele Akeze, Ikeoluwa Oloruntoba and Agu Osondu, who shared a vision to transform the traditional thrift system in Nigeria and empower retailers and micro-traders, Arich provides a mobile app and a distributed point-of-sale (POS) network that enables businesses to save, transact, and achieve their financial goals securely and conveniently.
Retailers can easily deposit and withdraw their savings, set financial goals, and track their progress through our innovative platform.
“We leverage an extensive network of agents who serve as touchpoints for cash deposits and withdrawals, making it convenient for savers to transact locally. This hybrid model combines the benefits of digital savings with the familiarity and trust of a local collector, addressing the specific needs and preferences of our target market,” Akeze, Arich’s chief operating officer (COO), told Disrupt Africa.
Arich’s solution goes beyond traditional banking services by providing tailored savings and financial management tools that empower retailers and micro-traders to take control of their finances.
“With our transparent tracking, goal-setting features, and wide network of agents, we are uniquely positioned to address the pain points faced by businesses in Nigeria, creating a positive impact on their financial well-being and contributing to the growth of the African economy,” Akeze said.
The traditional thrift system, commonly known as Ajo or Esusu, has remained largely unchanged for over 100 years, lacking transparency, convenience, and security.
“We saw an opportunity to modernise and digitise this system, addressing its limitations and providing a more efficient and effective solution for retailers and micro-traders,” said Akeze.
“It’s important to note that eight in 10 retailers in Nigeria currently rely on the Ajo method for their savings. However, this manual process poses risks and limitations, such as lack of transparency and accountability. Arich aims to revolutionise this system.”
Other startups are attempting to do the same, including Bankly, Alajo and local Ajo collectors, but Akeze said Arich differentiates itself by specifically addressing the pain points of retailers and micro-traders.
“We provide transparent tracking, goal-setting features, and a widespread network of agents to facilitate cash deposits and withdrawals. By offering a modern alternative to the traditional Ajo system, we aim to transform the way retailers save and transact, bringing transparency, convenience, and security to their financial journey,” she said.
Arich generates revenue primarily through transaction fees charged for savings and withdrawals made through its platform, but also explores partnerships and collaborations with businesses where it may earn commissions or fees for facilitating transactions or providing value-added services. Primarily self-funded with a small amount of angel investment, the startup has already onboarded over 22,000 users and established a widespread network of agents across various markets, providing convenient touchpoints for customers.
“The uptake of Arich has been remarkable since our launch. We have witnessed strong adoption and engagement from our target market of retailers and local traders in Nigeria,” Akeze said.
While the startup’s primary focus is on serving the Nigerian market, it does have expansion plans.
“We recognise the potential to replicate our success in other African markets that share similar characteristics, such as cash-based economies and a large population of retailers and traders. As we continue to strengthen our position in Nigeria and refine our business model, we will explore expansion opportunities in other African countries, strategically targeting those where our solution can address the unique challenges faced by retailers and traders,” said Akeze.
