Jia, a FinTech startup focused on blockchain-based lending, raised an impressive $4.3m in seed funding.
Established by former Tala executives, Jia’s unique business model aims to bring financial inclusivity to sectors often overlooked by traditional banking systems.
The funding round was led by TCG Crypto, with contributions from BlockTower, Hashed Emergent, Saison Capital and Global Coin Research, according to a report from Tech Crunch.
A number of notable angel investors also joined the round, including Packy McCormick, the founder of Not Boring, Anand Iyer of Canonical Crypto, and fintech lending founders Jared Hecht and Rory Eakin from Fundera and CircleUp, respectively.
Providing an overview of its operations, Jia leverages the power of decentralised finance (DeFi) to offer loans to borrowers. Those who repay their loans receive tokens which they can later redeem at a rate determined by Jia’s profits. The company’s innovative lending protocol aims to democratise access to finance, with a particular emphasis on empowering micro-businesses.
With the newly acquired funding, Jia plans to bolster its operations in Kenya and the Philippines. Looking to the future, the company is eyeing potential market expansion in West Africa, Latin America and Asia. Their vision for the funds is indicative of their mission to make affordable financing widely available.
Jia’s unique approach to lending borrows from the model of community finance groups, prevalent in markets such as Kenya. Jia seeks to cultivate a similar system, where borrowers become shareholders, thus earning from the collective investment. To support this, Jia recently launched its first on-chain pool with Huma Finance, a decentralised finance protocol.
In a recent statement, Jia CEO Zach Marks highlighted the company’s ethos, saying, “The idea is to provide affordable financing for micro-businesses, and when they repay, they become owners by getting token rewards. Each token has a claim to a stream of revenues from Jia’s lending protocol.”
Jia is revolutionising the traditional lending process by offering loans of up to $5,000 to small businesses. This loan amount, significantly larger than what is usually offered by digital lenders and loan apps, helps businesses fulfil their growth potential.
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