Finclusion Group, a South African company that is building Africa’s first credit-led neobank, has said that it has received an extra $2 million in funding.
The funding was provided by Leonard Stiegeler, who is also joining the company’s board of directors, and current investors Sudeep Ramnani and Jai Mahtani.
Finclusion was started in the middle of 2018 by Timothy Nuy and Tonderai Mutesva, who are also its co-founders and co-CEOs. The company has made a line of products that aim to close the credit gap on the continent while adding value for companies, workers, and consumers.
This is done with the help of three basic skills. Its Earned Wage Access product gives employees access to past and future wages and is distributed by employers. Its SME Finance module gives small and medium-sized businesses (SMEs) secured working capital loans, asset finance, and BNPL solutions for their end customers
Lastly, its Transactional Banking service is part of its ecosystem. It gives customers cards, savings accounts, and insurance.
The company is also starting a brand integration in all of its markets.
The old Finclusion Group is now called Fin, and its primary market subsidiaries, Fin Kenya (formerly TrustGro), Fin Tanzania (formerly Fikia Finance), and Fin South Africa, have taken this name (with its products now being SmartAdvance by Fin, NiftyCredit by Fin, NiftyCover by Fin, MediFin and e-Fin).
With this move, the business is unifying its presence across Africa under a single brand and emphasizing its goal of being the best global neobank in Eastern and Southern Africa.
The funding will be used to expand the company’s operations into new, fully integrated markets and to make new products, especially to help microfinance institutions that want to work with Fin to offer more financial services.