Fido, a Ghanaian fintech has raised a $30 million Series B funding round as it seeks to explore new markets in East and Southern Africa.
The round consists of a $20 million equity raise and $10 million in debt. Investors include global impact investment manager BlueOrchard and Dutch entrepreneurial development bank FMO.
About Fido
The company was launched in 2015 by Nadav Topolski, Tomer Edry, and Nir Zepkowitz to offer loans over mobile phones.
Over the years, Fido has introduced other products, including savings, bill payments, and smartphone financing, to grow its revenue streams.
What Happens Next
Fido offers every loan product with embedded insurance and it plans to include additional covers targeting its business customers.
This will include climate insurance to cover borrowers in the agriculture sector from extreme weather events such as drought and floods, as well as tradesman insurance.
How Fido Works
Customers on Fido can access loans of between $20 to $500, while businesses get higher amounts, depending on their needs, the nature of the enterprise, and credit score.
The loans are repayable within six months and attract interest of between 7% and 12%.
By The Numbers
Fido claims to have served a million customers, 40% of whom are small businesses and extended over $500 million in loans across Ghana, where it is said to have countrywide coverage, and Uganda, where it has served 50,000 customers since launch in December last year.
Source: TechCrunch
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