Nairobi-based Lendable has closed a $6.5m Series A funding round to help with market expansion plans.
The investment saw contributions from firms including KawiSafi Ventures, Omidyar Network, and Fenway Summer Ventures, as well as numerous US-based FinTech angel investors, like former Fair Isaac Corporation CEO Larry Rosenberger.
Lendable helps to connect alternative lending firms in Africa with access to capital to help scale up their operations. So far the company has completed five transactions, providing lenders with a total of around $2.83m, with the company expecting another five transactions to be completed by the end of the year.
Currently operating from Nairobi and New York, the platform is expected to launch its services in Tanzania, Rwanda and another unconfirmed market, next year. The East Africa alternative lending market is expected to hit $15bn by 2020, according to the company.
This round of equity will help Lendable to scale its operations, drive market expansion and launch new products.
Omidyar Network principal Ameya Upadhyay said, “Lendable is able to predict payment behaviour of micro entrepreneurs, many of whom don’t have access to affordable credit. This enables Lendable to unlock capital for creation of productive assets which drive greater economic productivity for millions of people and their families in frontier markets.”
Africa-based financing companies have recently seen an influx of funding, with motorcycle leasing platform Watu Credit raising $1.5m and mobile lender Branch International securing $2m.
Copyright © 2017 FinTech Global
