Kenya’s economy is powered by informal businesses, which contribute 33.8% to the country’s GDP and provide 83.4% of the total employment outside of small-scale agriculture, data from the country’s bureau of statistics shows. The contribution of these enterprises is pivotal to the country’s economy, yet they remain underserved by traditional banking institutions, making it hard for them to access the financing needed to grow. On the other hand, the financing gap left by conventional banking institutions has presented an opportunity for innovation, leading to the birth of fintechs like Asilimia. The Kenyan startup has over the last three years been offering a lifeline to traders in Kenya by enabling them to make mobile money transactions that are devoid of transfer charges.
Asilimia is set to use the funding to hire talent as it looks to fine-tune its technology and expand to another market within East Africa. It will also extend loans to micro, small and medium-sized enterprises (MSMEs) based on data from its Leja app. By providing mobile loans, Asilimia will join a space that has about 100 lending apps, including Branch by San Francisco-based Branch International Ltd and PayPal-backed Tala. In addition to enabling users to make mobile money transactions at no fee, Leja also supports bookkeeping, making it easier for the traders to track their revenues and outflows, without the need for technical or accounting knowledge. The platform provides valuable data that Asilimia plans to tap to extend loans to users. Beyond East Africa, Asilimia is exploring growth opportunities in other regions, as it seeks to continue bridging the financing gap currently experienced by traders across the continent.