Ghanaian fintech startup, Fido Solutions, has raised $30 million in equity investment. They have also secured an undisclosed debt funding in a Series A round, bringing the total equity investment raised by the startup to date to $38 million.
The Series-A round was led by Israel-based private equity fund Fortissimo Capital. However, Yard ventures, a Harvard alumni venture capital fund participated to secure the funding.
According to Fido’s CEO, Alon Eitan, Fido is set to link entrepreneurs with financial opportunities. They also provide small business owners in Africa with an alternative banking system that is easier to use.
“What we’re seeing in the market today is a segment of customers, who are mostly small business owners, who don’t really have access to traditional banking systems and we see an opportunity to offer these customers, who are outside of banking systems, savings products that are totally digital and very easy to use”, Alon said.
Fido was co-founded by Nadav Topolski, Tomer Edry and Nir Zepkowitz. The company has been providing credit to thousands of customers via mobile phones since 2015. It is looking to also include savings and payment for products in their services later this year.
What More Does Fido Solutions Offer?
The fintech is dedicated to expanding its market reach across Africa. It is also set to open its second research and development center in Accra, Ghana. This will help to complement its already existing branch in Isreal. It will also foster automation of its operations and longevity across various regions in Africa. Furthermore, the company also plans to establish operations in Uganda, its second market.
Alon stated that the fintech has issued more than $1.5 million in loans to 350,000 clients in Ghana. This number is projected to increase following newer markets in Africa, starting with Uganda.
Fido grants mobile loans of up to $250 to individuals and small businesses. These loans are repayable through single or multiple installments for a period of up to six months.
The company automates the whole financial services process for customers. From on-boarding to credit analysis and providing financial guidance as well. It leverages machine learning-risk models, making instant credit decisions. Yes, it also works for customers with no financial track record and also helps to reduce operational costs.
In Other News,
West African tech startups are recording tremendous growth at the moment. A lot of these startups are bagging the investments worth millions of dollars.
Nigerian companies are at the forefront of these investments. Healthtracka, a health tech startup, has raised $1.5 million to expand its medical diagnostics.
