Ghanaian Float Acquires Nigerian Cloud Accounting Startup Accounteer

Float, a Ghanaian cash flow and expense management platform, has completed the full acquisition of Accounteer, a Nigerian subscription-based cloud accounting service that combines accounting, tax preparation and financial advisory services all in a platform for African companies, for an undisclosed amount.

This deal comes 8 months after Float closed its $17 million equity and debt seed financing, one of the largest seed rounds in Africa. According to Jesse Ghansah, who co-founded Float with Barima Effah Adjei in 2021, the conversation that led to the acquisition began in 2021 and took close to 10 months before the deal was finally closed.

Ghansah and Adjei founded Swipe in 2020 to provide billing services to businesses. But in June 2021, the company changed its name to Float to give businesses credit against their accounts receivable. In other words, it grants loans to companies that expect their clients to pay them after providing a service, but that urgently need liquidity to operate their business. Float was Ghansah’s way of finally solving the credit problem he faced while running OMG Digital, a YC-backed media company he founded in 2015.

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Two years later, Ghansah and Adjei’s company now offers a variety of services. In addition to its core service, which is flexible lines of credit for businesses to cover cash flow gaps, Float also offers invoice automation, vendor payments, and invoice collections, while helping businesses connect and manage all your bank accounts and digital wallets in one dashboard. It also helps its users to open business accounts, generate payment links, and manage budgets and expense cards. The company has introduced more features, such as cash advances and instant payments, and is currently testing cross-border remittances in partnership with companies that offer this service.

Float is essentially positioning itself to be the “financial operating system” for Africa’s small and medium-sized businesses, but something is missing: a product to address poor and unconsolidated bookkeeping and accounting. One of the main reasons commercial credit penetration is so low is that most small businesses do not have structured financial processes and records, making it difficult for large lenders to underwrite and extend credit.

“Most of the business owners are combining their personal transactions with their business transactions,” Ghansah told TechCabal via call. “They don’t have proper accounting practices or proper accounting practices. We wanted to fix this at scale.”

The new Accounteer Dashboard

The desire to solve this problem for their clients led to this acquisition of Accounteer. Ghansah said that she has been monitoring some accounting startups since [Float] identified the accounting problem and was “particularly impressed by Accounteer’s track record over the years in becoming the cloud accounting software choice for over 14,000 SMEs in Nigeria and beyond.” He believes the addition of Accounteer to Float’s ecosystem of products and services will be a game changer as they scale into new markets with the 2 businesses.

Founded in 2015 by Merijn Campsteyn, Accounteer allows users to create invoices, track expenses, and record payments, among other things. The venture-backed company provides accounting software that allows businesses to continue their operations offline. For Accounteer, the exit came as it sought to provide credit to its more than 14,000 users in and out of Nigeria.

Ghansah believes that Accounteer has built a strong enough business and will continue to operate independently under Float. “Float would provide credit while Accounteer would do the bookkeeping and bookkeeping, we look forward to an exciting future with the team,” she said. While Ghansah mentioned that the majority of Accounteer’s talent pool would be joining Float, CEO Campsetyn, who is currently helping with the redesign and integration of both platforms, will not be joining Float full-time, but will instead act as advisor for now.

Float is currently up and running in Nigeria and Ghana with a plan to expand to Kenya before the fourth quarter of this year.

This year, we have seen a number of acquisition deals across the continent. Nigerian Autochek acquired Moroccan KEFAL Autos to break ground in North Africa and Francophone African CoinAfrique to drive growth in the region. The Moroccan Chari also acquired Axa Credit Maroc in Morocco and the Ivorian Diego to launch its operation in West Africa. This new deal is a valuable addition to the continuing trend of intra-continental mergers and acquisitions in Africa.

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