Solva, a FinTech company based in Almaty, Kazakhstan, recently made headlines with a significant financial boost of $20m.
The company has successfully secured an equity investment of $20m from Neo Crystal Holdings, a firm supported by the influential Sawiris family, and ZCP. This investment marks a significant milestone in Solva’s journey.
Solva, established in 2017 by former investment bankers Boris Batine and Alexander Dunaev, has rapidly risen to the forefront of the FinTech industry in Central Asia. The company is renowned for its innovative digital financial products aimed at micro, small, and medium enterprises (MSMEs), along with retail borrowers.
Solva’s cutting-edge use of machine learning and advanced data science tools sets it apart, especially in its efforts to offer working capital financing to underbanked MSMEs and aid in building robust credit profiles.
The freshly infused capital is earmarked for several strategic initiatives. Primarily, it will bolster Solva’s ongoing transition from a microfinance organisation to a fully licensed SME-focused bank, a significant leap expected by 2024.
This transformation aims to expand Solva’s capacity and outreach, introduce new funding sources, and add transactional products to its portfolio. Additionally, the investment will accelerate Solva’s regional expansion, spreading its pioneering credit scoring platform and inclusive finance principles across Central Asia.
Underpinning Solva’s success is its commitment to socially responsible lending and an ESG-centered approach. The company, recognised as “Fintech of the Year” in Kazakhstan in 2023, has tripled its loan portfolio for MSMEs, creating over 41,000 jobs. In a landmark move, Solva issued ESG gender bonds in 2023, directing the proceeds to women-led enterprises to promote gender equality in business. The company boasts a significant reach, with nearly 70% of its MSME clients being women entrepreneurs and 78% residing in rural areas.
Solva co-founder Boris Batine expressed enthusiasm about the new strategic partnership: “We are delighted to announce this new strategic partnership and excited about the future prospects. We believe that Solva will greatly benefit from having a well-known and respected international investor, and additional funding will accelerate the execution of our regional strategy and expansion plans.
“Having stepped into the active phase of transforming our company from an NBFI into a fully licensed bank, it is essential to have knowledgeable and reliable international partner along our journey, who also shares our development vision and sustainability principles.”
Solva’s financial journey has been marked by significant achievements, including the processing of 5.5 million credit applications solely in Kazakhstan. The company’s employment of over 800 staff and its expansion into multiple cities underlines its growing influence in the FinTech sector.
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