In Africa, are you really a lending app if your goal isn’t to become a digital bank?
Well, FairMoney definitely passes this test.
Last week, FairMoney announced a $42 million Series B round. The investment comes after FairMoney raised $11 million Series A two years ago and $16 million in total within its first four years.
Meet the Investors: The round was led by Tiger Global Management with existing investors like DST Partners, Flourish Ventures, Newfund, and Speedinvest participating.
Did you say Tiger Global?
Yes, the American investment firm has invested in 180 unicorns and added 81 companies to its portfolio this year.
This is its fourth investment in an African startup after iRoko (2013), Takealot (2014) and Flutterwave (2021). Notably, this is the first time the investment firm is investing in two African startups within a year. A sign of its renewed interest in the African continent after a long hiatus.
Back to FairMoney, how’s it doing?
From having a little over 100,000 users in its first year (2017) of operation, FairMoney has grown to have 1.3 million unique users who have made more than 6.5 million loan applications. Last year, the company disbursed a total loan volume of $93 million.
In less than a year of being in India, the company has processed more than 500,000 loan applications from over 100,000 unique users.
This year, FairMoney achieved one of its crucial goals by acquiring a microfinance bank license in Nigeria. The license allows FairMoney to operate as a financial service provider in Nigeria.
For FairMoney, it’s focusing on the Nigerian and Indian market where it faces stiff competition from other lending apps, digital banks and even traditional banks. Focus here means it’s building out more features to earn its digital bank status. It’s also working on a number of additional services including savings, stock trading, and crypto-trading products. These are subject to regulatory approvals.
In other related news. TeamApt raised an undisclosed Series B round.