A funding round with fintech debt financing company Lendable has raised USD 20 million for African fintech Finclusion Group.
Mauritius-registered Finclusion Group provides online financial and credit services, using artificial intelligence (AI)-driven systems through a range of brands across Sub-Saharan Africa, including South Africa, Tanzania, Kenya, eSwatini and Namibia.
The financing raised with Lendable should help Finclusion to develop its business across both the East and South African markets, which should create more financial inclusivity in these areas.
An event held by law firm Bowmans and Afriwise in August discussed Africa’s huge technological advancements, but questioned whether fintech regulation in East Africa has been progressing at the same level.
Finclusion’s CEO Timothy Nuy said in a statement that the company has “already secured a number of new key distribution partnerships” to grow its customer base. Nuy is the former chief executive of fintech company MyBucks.
Lendable’s CEO Chris Wehbe said: “We’re looking forward to seeing the Finclusion Group reach even more customers across Africa with our funding driving further financial wellness and inclusion — both of which are a core focus for Lendable.”
Tamuka Mpofu, Finclusion’s chief financial officer, emphasised that the funding is a milestone for Finclusion: “Partnering with a reputable institution like Lendable is evidence of sustained growth all while maintaining strong portfolio quality throughout the pandemic.”
Finclusion also recently acquired a stake in South African payroll software company HelloHR, forming part of Finclusion’s wider strategy to offer holistic financial well-being products via employers. In a statement, Nuy said: “HelloHR will a contribute to the Finclusion Group platform, strengthening all offerings through improved customer experience and increased customer retention rates.”
Also this month, South African mobile telecommunications company MTN Group and Sanlam formed a strategic alliance to spread the financial services company’s insurance and investment offering across Africa.
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