Online banking and digital credit market platform
Sector: Fin Tech
Year of establishment: 2014
Turnover: USD 70K-100K
Investment need: 500K
Product, market solution and potential
The company was established in 2014. They developed a banking and digital credit market platform integrated with mobile tools that enable Savings and Credit Cooperative Organisations SACCOS and Microfinance institutions MFIs to lend money to growing businesses in East Africa. Rural Cooperatives that work with urban based financiers are able to get working capital loans. Whereas lenders can provide financing to this market segment, they are also able to monitor borrower repayment patterns to provide a credit rating as basis for credit underwriting. The company offers a mobile and web based user friend platform for Savings and Credit Cooperatives organisations (SACCOS) and Microfinance institutions (MFIs), creating ease of financial transactions and reducing the risks in the microfinance industry. The company has software that provides substantial data and information to enable credit underwriters in the micro finance market make good judgement on clients prior to advancing credit.
Entrepreneur and Team
The company is a registered limited liability company founded by a team of innovative youth who have won the Resilient Africa award and the World Summit award 2015. One of the founders is a certified entrepreneur with a background in the financial services industry, particularly conversant with electronic payment systems. He also has a background in a telecom industry and exposure to government projects working with savings and cooperative organizations (SACCOS).
Turnover and Investment need
The company received a grant from USAID to reach out to more SACCOs and is looking to raise an extra $500,000 to expand their operations including credit/digital loan fund ($350K), technology enhancement ($50k) and customer acquisition ($100k). The extra investment should lead to an increase in interest income from the loans offered, increased transactional charges from peer to peer lending and fees from the credit scoring.
- The company has helped farmers in rural areas access finance to expand their farms and increase on production which gives them an opportunity to be enrolled as contract farmers in organizations like World Food Program (WFP).
- The company’s service has led to a growing number of farmers with the ability to fend for their basic necessities because of the opportunity to earn more from their agricultural activities.