Mobile banking in Nigeria is really improving fast as FairMoney a Paris-based fintech has just secured the sum of €10 million in seed funding to improve the company’s online lending services to more customers with the aim of becoming a holistic financial platform for underserved customers, in Nigeria.
The funding was led by Flourish, a venture of The Omidyar Group, DST Global partners and existing partners like Newfund, Speedinvest, and Le Studio VC. This recent funding round totals the funds raised by FairMoney to €15 million.
The funds will be pumped into the company’s technical team to develop a platform that will fuel its dream of becoming a fully-fledged mobile banking platform in Nigeria and beyond.
Laurin Hainy, CEO of FairMoney said the company would continue to innovate its offerings in order to transform to a FinTech that not only lends money but provides a lot of financial services.
“Our vision is to build a holistic financial platform for underserved customers in emerging markets. We want to do that by offering an easy-to-use product to our customers and become a financial one-stop-shop for them. We started with credit for small business owners and individuals, and we are expanding our services rapidly. Think digital bank for emerging market consumers.”
Fairmoney uses in underwriting credit is based on a proprietary algorithm that adopts machine learning techniques to smartphone data. The average loans are 30 Euros and customers can grow their loan limits up to 400 Euros over time by showing good repayment habits.
Launched in 2017, FairMoney started as a mobile app that uses alternative smartphone data to underwrite microcredit in Nigeria. FairMoney is a licensed online lender, that provides instant loans to meet up urgent cash needs.
FairMoney claims to have more than 200,000 customers who use the mobile app, with a majority using the platform to finance their small business needs.