DDB Venture Capital &  etcetera Founders Q&A Session

Opening & Company Overview

Sarah Oakley (DDB VC): Thank you both for joining us today. Let's start with the basics. Can you walk us through what etcetera is and what problem you are solving in the Nigerian market?

Adaora Nkemdirim (MD): Thank you for having us, Sarah. etcetera is a financial literacy fintech platform specifically designed for children aged 7 to 17 in Nigeria. We provide age-appropriate debit cards coupled with a comprehensive digital learning platform that teaches financial responsibility, saving habits, and money management skills. The core problem we're addressing is Nigeria's financial literacy crisis – studies show that less than 30% of Nigerian adults are financially literate, and this stems from a complete lack of financial education during childhood.

Tunde Bakare (CTO): From a technical perspective, we've built a secure, parent-controlled ecosystem where children can learn by doing. Parents can set spending limits, monitor transactions in real-time, and children earn educational rewards for completing financial literacy modules. We are essentially gamifying financial education while providing practical experience with digital payments.

Michael Tan (DDB VC): What is your unique value proposition compared to existing solutions in the market?

Adaora: Most existing fintech solutions in Nigeria focus on adults or are generic savings platforms. We are the only company specifically addressing the 7-17 age demographic with culturally relevant financial education. Our content is developed in partnership with Nigerian educators and reflects local economic realities – understanding Naira volatility, navigating informal markets, and building savings habits despite economic uncertainty.

Market Size & Opportunity

Sarah: Tell us about the market size you're targeting. How large is the addressable market for youth financial services in Nigeria?

Tunde: Nigeria has approximately 45 million children in our target age range. With mobile penetration at 85% and growing smartphone adoption among families, our total addressable market is roughly $2.3 billion annually. We are initially targeting the emerging middle class – families with household incomes above ₦500,000 annually – which represents about 15 million households.

Adaora: The serviceable addressable market is around $340 million, focusing on urban and semi-urban areas with reliable internet connectivity. We see this expanding rapidly as infrastructure improves and digital payment adoption accelerates post-COVID.

Michael: What about regulatory challenges? How do you navigate child-focused financial services in Nigeria?

Adaora: We work closely with the Central Bank of Nigeria and have obtained all necessary approvals for our card issuing partnership. Children's accounts require parental consent and oversight, which actually strengthens our compliance position. The CBN has been supportive of financial inclusion initiatives, especially those targeting youth education.

Business Model & Revenue Streams

Sarah: Walk us through your business model. How do you make money?

Tunde: We have three primary revenue streams. First, monthly subscription fees – ₦2,500 per child per month for our premium educational platform. Second, interchange fees from card transactions, typically 1.2% per transaction. Third, partnership revenues from financial institutions and educational content licensing.

Adaora: We also have a freemium model for basic financial literacy content, which serves as our customer acquisition funnel. Premium features include personalised savings goals, advanced parental controls, and one-on-one financial coaching sessions.

Michael: What's your unit economics looking like? Customer acquisition cost versus lifetime value?

Tunde: Our current customer acquisition cost is ₦15,000 per family, primarily through digital marketing and school partnerships. Average monthly revenue per user is ₦3,200, with a gross margin of 65%. Customer lifetime value is approximately ₦125,000 based on an average retention period of 3.2 years.

Adaora: We're seeing strong cohort retention – 78% of families stay active after 12 months, which is exceptional in the fintech space. The educational component creates strong habit formation and family engagement.

Technology & Product Development

Sarah: Tunde, tell us about your technology stack. What makes your platform technically differentiated?

Tunde: We've built a cloud-native architecture on AWS with multi-layered security protocols specifically designed for minors. Our core platform includes real-time transaction monitoring, AI-powered spending pattern analysis, and adaptive learning algorithms that personalise educational content based on each child's progress and spending behaviour.

Michael: How do you ensure security and data privacy, especially given you're working with minors?

Tunde: Security is paramount. We use end-to-end encryption, biometric authentication for parents, and maintain zero-knowledge architecture for sensitive data. All data is stored locally in Nigeria to comply with data sovereignty requirements. We've also implemented automated fraud detection systems and instant transaction alerts.

Adaora: We undergo quarterly security audits and maintain compliance with both Nigerian data protection regulations and international standards for child online safety. Every feature is designed with privacy-by-design principles.

Traction & Growth Metrics

Sarah: What traction have you achieved so far?

Adaora: Since launching 18 months ago, we have onboarded 12,500 active families across 6 Nigerian states. We are processing about ₦180 million in monthly transaction volume, with consistent 15% month-over-month growth. Our net promoter score is 73, indicating strong customer satisfaction.

Michael: That's impressive growth. What's driving customer acquisition?

Adaora: About 40% of our growth comes from referrals – parents sharing with other families. We have also established partnerships with 85 private schools in Lagos and Abuja, where we conduct financial literacy workshops. Social media marketing, particularly on WhatsApp and Instagram, drives another 35% of acquisitions.

Tunde: Our retention metrics are strong too. Children who complete our foundational learning modules show 23% better spending decision-making and 67% higher savings rates compared to control groups.

Competitive Landscape

Michael: Who do you see as your main competitors, both locally and internationally?

Adaora: Locally, we compete indirectly with traditional savings programs offered by banks like GTBank and Access Bank, but they lack educational components and aren't designed for children. Internationally, we study companies like Greenlight in the US and GoHenry in the UK, but Nigerian market dynamics are fundamentally different.

Tunde: Our main competitive advantage is cultural localisation and price positioning. International solutions cost 3-5x more than our pricing, and they don't address specific Nigerian financial realities like managing pocket money, understanding local markets, or navigating extended family financial obligations.

Sarah: How do you maintain competitive advantage as the market grows?

Adaora: We are building strong network effects through our educational platform and establishing deep partnerships with schools and financial institutions. Our early mover advantage in child-specific financial education creates substantial switching costs for families.

Team & Organisation

Sarah: Tell us about your team. What's your background and why are you the right founders for this opportunity?

Adaora: I have 8 years of experience in financial services, previously at Flutterwave and before that at Standard Chartered Nigeria. I led digital payment initiatives and saw firsthand how poor financial literacy affects families. I have an MBA from Lagos Business School and have been passionate about youth education since childhood.

Tunde: I am a software engineer with 10 years in fintech, previously CTO at a payments startup that was acquired by Interswitch. I have deep expertise in building secure, scalable financial platforms and have been working on child-safe technology solutions for 4 years.

Michael: What's your current team size and key hires you're planning?

Tunde: We are currently 23 people – 8 engineers, 6 in product and design, 4 in marketing and partnerships, 3 in customer success, and 2 in compliance and operations. We're hiring a VP of Partnerships to accelerate school relationships and a Head of Content to expand our educational curriculum.

Fundraising & Use of Funds

Sarah: You're raising a Series A. What's your funding target and how will you use the capital?

Adaora: We are raising $4.5 million Series A. The primary use of funds will be: 40% for customer acquisition and marketing, 30% for product development and technology infrastructure, 20% for team expansion, and 10% for regulatory compliance and partnerships.

Michael: What specific growth targets are you aiming for with this funding?

Adaora: Over the next 18 months, we plan to reach 100,000 active families, expand to 12 Nigerian states, and launch our first international market – Ghana. We are targeting ₦2.5 billion in annual transaction volume and achieving cash flow positive operations by month 20.

Tunde: On the product side, we'll launch advanced features like peer-to-peer transfers between children, cryptocurrency education modules, and AI-powered financial coaching. We're also developing APIs for integration with Nigerian banks' existing youth programs.

Challenges & Risk Management

Sarah: What do you see as the biggest challenges facing your business?

Adaora: The primary challenge is market education – many Nigerian parents are still skeptical about giving children access to financial services. We address this through extensive parent education and transparent control mechanisms. Economic volatility also affects purchasing power, but we're seeing that families prioritise children's financial education even during tough times.

Michael: How do you handle regulatory changes or potential restrictions on fintech services?

Tunde: We are maintaining close relationships with regulatory bodies and have built our platform to exceed current compliance requirements. Our advisory board includes former banking officials and we regularly participate in industry consultations. We have also designed our architecture to quickly adapt to regulatory changes.

Adaora: Currency volatility is another challenge. We are exploring partnerships with stablecoin providers and international payment processors to offer currency hedging options for families who want them.

Long-term Vision & Expansion

Sarah: Where do you see etcetera in 5 years?

Adaora: Our vision is to become the leading financial education platform for young people across West Africa. We want to graduate a generation of financially literate young adults who understand saving, investing, and entrepreneurship. By 2029, we aim to have 2 million active users across 5 African markets.

Tunde: From a product perspective, we'll evolve from financial literacy to comprehensive life skills education – covering entrepreneurship, digital literacy, and career planning. We want to be the platform that prepares African youth for the digital economy.

Michael: What about international expansion beyond West Africa?

Adaora: We see opportunities in Kenya, Rwanda, and South Africa based on similar market dynamics and regulatory environments. We're also exploring partnerships with diaspora communities to serve Nigerian families living abroad who want their children to maintain financial connections to Nigeria.

Partnership & Growth Strategy

Sarah: Tell us about your partnership strategy. How do you plan to scale distribution?

Adaora: We are pursuing three partnership channels: educational institutions, financial services providers, and corporate employee benefits programs. We already have LOIs with 3 major Nigerian banks to white-label our platform for their customer families.

Tunde: We're also developing affiliate programs with popular parenting influencers and family lifestyle brands. Nigerian parents trust recommendations from their communities, so building grassroots advocacy is crucial for our growth strategy.

Financial Projections & Exit Strategy

Michael: What do your financial projections look like for the next 3-5 years?

Tunde: We project reaching ₦2.8 billion in annual revenue by year 5, with 35% EBITDA margins. Our growth model shows path to profitability by month 24, driven by subscription revenue growth and improved unit economics as we scale.

Adaora: We see potential exit opportunities through acquisition by major financial institutions looking to expand youth services, or strategic partnerships with international education companies entering African markets.

Sarah: That covers most of our key areas. Any final thoughts or questions for us about DDB's investment approach?

Adaora: We are impressed by DDB's track record with fintech investments in emerging markets. What we would love to understand is how you typically support portfolio companies with regulatory navigation and partnership development, particularly for companies focused on underserved demographics like youth.

Michael: That's exactly where we add the most value. We have deep relationships across African financial services and regulatory bodies. We also provide hands-on support with international expansion when companies are ready for that stage.

Sarah: Thank you both. This has been a thorough discussion. We will be in touch with our decision within the next two weeks.

Adaora & Tunde: Thank you for your time and consideration. We are excited very impressed with our continuous partnering with DDB Venture Capital.







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