Ghanaian fintech Fido secures $30m equity investment and undisclosed debt funding
Since 2015, Ghana-based fintech Fido has extended credit to thousands of users via mobile phones, and the company is now looking for new ways to expand across Africa.
Fido has announced that it will add savings and payment options to its portfolio later this year, as well as in Uganda, its second largest market, as it aims to expand across the continent.
The fintech also plans to establish a second research and development center in Ghana’s capital, Accra, to complement its Israeli office and allow it to automate much of its processes to ensure long-term viability.
The startup’s intentions follow a $30 million equity investment and funding through an unknown loan the startup received in a Series A funding round led by the private equity firm. Israel-based Fortissimo Capital, with participation from venture capital firm Yard Ventures led by Harvard alumni. . This brings the total amount of equity raised to $38 million.
Fido, created by Nadav Topolski, Tomer Edry and Nir Zepkowitz, offers consumers and small businesses mobile loans of up to $250. Loans can be repaid in one or more installments over a six-month period.
Users can easily create a Fido account, according to Eitan, as digital registration only takes about 10 minutes.
Customers must upload headshots and copies of their ID cards to register, which are then evaluated by Fido’s image recognition algorithm and cross-checked against existing databases. This multi-step authentication, according to Eitan, prevents scams.
He went on to say that the fintech uses credit scoring technology to determine what it can offer borrowers.
According to Eitan, the fintech has provided more than $1.5 million in loans to 350,000 Ghanaian customers. This sum is expected to increase as it expands into other African markets, starting with Uganda.
Fido is backed by a team of 65 people, including digital debt collectors who Eitan says follow up on late payments in an ethical manner.
The financial sector has been transformed by fintech. The financial industry has spawned new innovative concepts aimed at improving user experience and helping financial institutions to be more productive and provide better service since fintech startups started to emerge.
Fintech and innovation can help increase financial inclusion. More and more platforms are entering the market and offering services to underbanked and unbanked people.
Fintech companies such as Fido have made it possible to obtain loans without using paper, from the application procedure to the disbursement of the loan amount.
Fintechs have transformed everything, including the verification procedure, into digital format. Users can not only obtain funding digitally, but can also upload their documents and any other essential information. Verification of user documents will be done digitally, which will save users time and effort.
The verification procedure will be completed in a few minutes thanks to smooth and intelligent procedures. Fido emphasizes legitimate authentication to prevent fraud, and the company is expanding its platform to include additional services for a better customer experience.
Don’t miss the important articles of the week. Subscribe to techbuild.africa weekly digest for updates.