Finclusion Group, which aims to boost financial inclusion in sub-Saharan Africa, has reportedly secured $20m to support enterprise development in the region.
The financing was raised in partnership with Lendable, a FinTech providing capital to companies in emerging and frontier market FinTech companies, according to a report from PYMNTS.
With the fresh funds, Finclusion hopes to bolster financial inclusion in South Africa, Tanzania, Kenya, eSwatini and Namibia. As part of this effort, the company claims to have already stablished a number of key distribution partners.
Finclusion aims to boost financial inclusion through several FinTech products. Employers can leverage the platform to access payroll, HR, financial wellness and insurance solutions, while employees can benefit from wage streaming and access to earned and future wages.
Its platform can also be used by consumers and SMEs for buy now, pay later technology.
Currently, the company is live in five countries, has 240,000 customers and has distributed $310m in loans.
Finclusion recently acquired South African payroll software startup HelloHR. It hopes the acquisition will enable it to provide customers with holistic financial wellness products through employers.
Speaking on the deal, Finclusion CEO Timothy Nuy said, “HelloHR will a contribute to the Finclusion Group platform, strengthening all offerings through improved customer experience and increased customer retention rates. The relationship allows the Group to provide employers in SmartAdvance access to payroll services.”
Earlier in the year, Wapi Pay closed a $2.2m pre-seed round to bolster global payments and remittance services between Asia and Africa.
Africa is a huge market for FinTech companies, as many try to help solve the huge unbanked problem. One of the best ways to improve financial inclusion are through payment service providers. The region’s financial ecosystem lacks legacy infrastructure, leaving space for FinTechs to come in and meet the needs.
Speaking to FinTech Global on how payments are boosting financial inclusion in Africa, Corrie Bakker, head of business development and strategy at PayU Africa, said, “Successful application can reduce poverty, enable socio-economic mobility and ultimately, help create a world without financial borders where everyone can prosper.”
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