Escrowlock, a Nigerian fintech company specializing in escrow services, has announced that it has secured an undisclosed amount of funding from Facebook. This investment positions Escrowlock as one of 30,000 technology companies globally to benefit from a substantial $100 million grant initiated by the social media giant. The grant package provided to the startup is a strategic blend of direct cash injection and valuable Facebook advertisement credits, designed to support its growth and operational expansion.

Founded by Elochukwu Ezenekwe in Anambra State, Escrowlock addresses a critical need in the burgeoning landscape of online transactions. As digital commerce continues its rapid ascent, so too does the prevalence of online scams. Escrowlock steps in as a crucial intermediary, functioning as a trusted middleman whose primary objective is to safeguard both buyers and sellers throughout the transaction process, thereby fostering a more secure online environment.

The operational mechanism of Escrowlock is straightforward and designed for user confidence. Users initiate a transaction on its web application by having either the seller or the buyer complete a form to declare the transaction open. Following this, the buyer remits the agreed payment directly to Escrowlock, which holds the funds securely. The money remains with Escrowlock until the buyer confirms the satisfactory receipt of the goods or services in the stipulated condition. Only upon this confirmation does Escrowlock release the payment to the seller, ensuring that both parties fulfill their commitments.

For its holding and intermediary services, Escrowlock levies a small percentage-based fee. Elochukwu Ezenekwe elaborated in a virtual discussion with TechNext that the transaction charges are capped at 3.25% of the total amount being transferred from the buyer to the seller. Notably, for larger transactions exceeding N2,000,000 (Nigerian Naira), the fee structure becomes more accommodating, progressively dropping to as low as 1.25%. A fee calculator on their platform demonstrates this tiered approach, where transactions up to N2,000,000 attract the standard 3.25%, with reduced rates applying beyond this threshold.

While the recent funding from Facebook is not immediately earmarked for an aggressive expansion into new markets, Elochukwu Ezenekwe clarified that the capital will be instrumental in fortifying Escrowlock’s existing operations across various states within Nigeria. The company plans to significantly bolster its team of online affiliates and concurrently expand its marketplace offerings. Furthermore, a key initiative for growth is the expansion of its "Oso Afia" program, which empowers individuals to promote Escrowlock’s services and products, earning commissions on successful sales they facilitate. Ezenekwe emphasized, "the funds have been really helpful but not necessarily in the area of helping us expand into new markets. Instead, we will consolidate on our existing market first and that might take the next year or two." Ultimately, Escrowlock’s long-term vision is to cultivate a robust and trustworthy online marketplace where both sellers and buyers can conduct business with complete peace of mind, free from the pervasive fear of scams.