The fintech, which uses AI algorithms to provide financial services to African customers via an array of credit-centric products, raised $20 million in debt and equity pre-Series A financing. Fin also raised a $20 million debt facility from emerging markets debt provider Lendable in September 2021, bringing its total capital secured in equity and debt to $42 million.
African customers are in dire need of credit. But from a long-term perspective of a company offering just loans, it can be hard to compete with other lenders that provide deposits and investments, financial services that any lender, backed with years of customers’ credit history, can efficiently cross-sell.
Fin, taking a cue from other credit-first neobanks, has built consumer-facing credit products to close the credit gap in the countries where it operates, including Tanzania, Namibia, South Africa, Eswatini and Kenya. Its offerings are also diversified. There’s SmartAdvance, where Fin, via employer partnerships, offers solutions for employees’ financial well-being. Its wage streaming product provides payroll loans and future wage loans where employees can take loans off the back of their salary, deduct them from their payroll and lend through employer relationships.
A planned expansion into new markets next year, then offering services to microfinance banks that will enhance their value proposition to customers; for instance, better credit or saving tools. The technology behind this offering will be known as Fin Connect and is supported by Fin’s earlier acquisition of the microfinance technology services provider Awamo. Finally, Fin says it will continue supporting adjacent businesses in the space through its venture portfolio, one of which is Kenyan insurtech platform m-Tek.