Herconomy: A Trailblazer in Women’s Financial Empowerment

Herconomy’s pre-seed funding story is one for the books. Last year, the tech community was abuzz when founder Ife Durosimi-Etti announced on Instagram that her community-driven startup had raised an astonishing $600,000 within just 24 hours. This remarkable feat was aimed at scaling Herconomy’s SaaS product, which provided women with ongoing access to career opportunities and exclusive discounts from select brands.

A Bold Pivot to Fintech

In a significant shift, Herconomy is transitioning from its original model to become a fintech company, discontinuing its previous product. Durosimi-Etti, who has a knack for navigating change, has a diverse background that includes corporate communications at Nigerian Breweries and running a furniture business. Her journey has culminated in a mission to empower women through financial independence.

Herconomy’s earlier product successfully fostered a vibrant community of women, offering them access to jobs, opportunities, and capacity-building workshops. However, Durosimi-Etti envisioned a broader impact—one that would actively assist women in expanding their wealth, managing their finances, and securing funding for their enterprises.

Addressing Financial Exclusion

In Nigeria, only 33% of women have bank accounts, which isolates them from digital services and income-generating opportunities. Durosimi-Etti believes Herconomy is poised to tackle this challenge head-on. The startup has launched a mobile savings app specifically designed for women, enabling them to save money and earn up to 10% annual interest on their savings.

Herconomy’s motto, “save, earn, learn, connect, and thrive,” encapsulates its mission. The organization emphasizes that saving is the first step toward financial stability. This belief is rooted in community feedback and the success of various in-house saving challenges, where over 500 women collectively saved more than $100,000.

The Savings App: Features and Impact

The savings app has already garnered attention, with around 5,000 users participating since its test run in April 2022. The app offers two main savings plans: Vault, which earns 10% interest per year, and Float, which provides 8% interest. Additionally, it features an “Accountability Partner” option, allowing friends to support each other in achieving their savings goals. A unique “Save as You Spend” feature enables users to save approximately 30% on goods and services.

Despite its pivot to fintech, Herconomy remains committed to its community roots. Unlike many fintech solutions, the app users will still be integrated into the activities of Herconomy’s 6,000-member community. Users will receive notifications about networking events, knowledge-sharing opportunities, and business growth initiatives, ensuring they remain connected and supported.

Empowering Women Through Community

Herconomy’s approach is distinctly women-focused, although men are not excluded from participating in the community or using the savings app. The startup prioritizes decisions and assessments with women’s needs in mind. Durosimi-Etti has emphasized the importance of building a supportive ecosystem for women, which aligns with the company’s goal of empowering one million women by 2025.

To facilitate this, Herconomy has launched the “Each Woman Brings One” campaign, incentivizing women to refer others to the savings app. This initiative aims to create a ripple effect of financial empowerment within communities.

Challenges and Team Dynamics

While developing this innovative product, Durosimi-Etti faced challenges in finding talent, as many skilled Nigerians either work remotely or seek opportunities abroad. Nevertheless, she has successfully built a diverse team of 31 individuals, with more than half being women. This gender balance reflects Herconomy’s vision of creating equal opportunities for women in the workforce.

Strategic Partnerships and Future Goals

Herconomy collaborates with Providus Bank, ensuring that funds are secured and insured by AXA Mansard insurance company. The startup is poised for growth, with plans to expand beyond its cooperative license to obtain microfinance bank (MFB) support. This move will enhance its financial inclusion agenda, allowing Herconomy to provide essential banking services to unbanked women.

One of Herconomy’s primary goals is to offer credit to its users. Opral Ogbuigwe, the associate product manager, has indicated that the company plans to roll out credit services in 2023, further solidifying its commitment to empowering women financially.

A Vision for the Future

Herconomy’s venture into fintech underscores its belief in the potential of women, demonstrating that even in Nigeria’s competitive tech landscape, startups with a social mission can carve out a unique space. By leveraging disruptive technologies, Herconomy aims to make a meaningful impact on the lives of women, fostering a culture of financial independence and community support.