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Read the full risk warningFinancial technology · Debt
Lagos Pay
Merchant collections infrastructure for informal retail · Lagos State, Nigeria
Company overview
Lagos Pay Limited provides point-of-sale terminals and settlement software to 2,300 small retailers across Lagos and Ogun states. It was incorporated in 2021 and qualifies as an early-stage company with a technical partner.
The company earns a fixed fee per terminal per month plus a share of transaction value. Growth is driven by agent recruitment rather than advertising, and the terminal fleet is financed on the balance sheet.
Management team
Tunde Adeyemi
Chief Executive
Ten years in payments operations at two Nigerian switching companies.
Ngozi Eze
Chief Technology Officer
Built settlement and reconciliation systems for a licensed PSSP.
Use of proceeds
| Application of funds | Share of raise |
|---|---|
| Terminal fleet expansion (4,000 units) | 55% |
| Agent recruitment and training | 20% |
| Settlement float | 15% |
| Offer costs and platform fees | 5% |
| Compliance and reporting reserve | 5% |
Instrument, price and rights
Plain vanilla bond, 24-month term, 18% coupon paid semi-annually
Contractual interest and principal repayment; no equity, no conversion, no security
Capital structure and ownership
| Holder | Pre-offer stake |
|---|---|
| Founders | 64% |
| Technical partner (payments group) | 20% |
| Seed investors | 16% |
Financial condition
- Audited revenue of ₦248m for the year ended 31 December 2025, up from ₦121m in 2024.
- Loss after tax of ₦42m in 2025, driven by terminal depreciation and agent acquisition costs.
- The bond is unsecured and ranks behind an existing ₦45m equipment finance facility.
- Interest cover depends on continued terminal growth; the company is not currently profitable.
Risk factors specific to this Fundraiser
- The company is loss-making and services this coupon from operating cash flow, not from profit.
- The bond is unsecured and unrated. If the company fails, bondholders may recover nothing.
- Terminal economics depend on transaction volumes that fall sharply during network outages.
- Regulatory changes to interchange or agent-banking rules could compress fee income.
- There is no market for these bonds. You may never be able to sell them.
Related-party transactions
- The technical partner provides switching services at a negotiated rate of ₦18m per year.
- A founder-owned logistics company handles terminal deployment for ₦4.5m per year.
Exit options for investors
- The bond is held to maturity in the ordinary course; there is no secondary market.
- A one-year minimum lock-in applies from allotment, ahead of the 24-month maturity.
- Early transfer is only permitted in the limited circumstances set out in the Rules.
Investor questions and answers
Questions and answers are public and moderated by PennyTree. Posting opens once investor accounts go live; the thread below shows questions already answered by the Fundraiser.
How is the coupon funded while the company is loss-making?
Verified investor
From gross operating cash flow, which was positive in 2025 before terminal depreciation. The full sensitivity table is in section 7 of the offering document, and the risk factor above states the position plainly.
Tunde Adeyemi, Chief Executive
Documents
- Offering document (PDF)Full disclosure pack, 48 pages
- Audited financial statements 2023–2025Prepared under IFRS for SMEs
- Trust deed and coupon scheduleBond terms and payment dates
- CAC certificate and board resolutionAuthorising the issue
Downloads become available to registered, verified investors when accounts go live.