Alumni Member Branch raises Sh7bn for loans
Branch, a Nairobi Garage Alumni and mobile-based money lender has recently raised over Sh7 billion in their second round of funding to power its expansion and business into more countries.
This announcement from Branch is just one of the latest in a series of large investments in financial technology in the emerging markets in Kenya.
Matthew Flannery, Chief Executive of Branch plans to use part of the funds to launch operations in India and expand their product offerings to include a savings and a payments’ platform into markets where they can enjoy a one million customer base.
“Branch processes tens of thousands of loans every day, in amounts ranging from Sh250 to Sh50,000. The company’s growth rate is 20 per cent on a month-over-month basis and expects to disburse over Sh25 billion in 2018,” says Flannery.
Victory Park Capital and the International Finance Corporation (IFC) have established a new fund which targets financial technology companies, specifically in Kenya and other emerging markets.
Branch has offices in San Francisco, Nigeria (Lagos) and Nairobi and they use an individual mobile phone owner’s calling and social media habits to determine the creditworthiness of the potential lender.
Schwark Satyavolu, general partner of Trinity Ventures said that expanding use of smartphones in Kenya and other emerging markets coupled with lack of access to credit was a good opportunity was a great opportunity for them to invest in.
He continued to say; “Because of the confluence of these two megatrends and because of the team’s incredible bench of talent, I am excited to invest in Branch and am bullish on its future.”
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