FairMoney, an app-based bank from Nigeria, has announced that it has raised $42 million in Series B funding that was led by Tiger Global Management. The company uses artificial intelligence and machine learning to praise through mobile data and underwrite microcredit.
The funds are expected to be used for the expansion of its services that is likely to include a full fledged digital banking at some point in time. It is also likely to be used for its growth and expansion to other countries as well. The company was established in 2017, it has been growing steadily and has also recently expanded operations into India. In 2020, the company has lent $93 million to over 1.3 million users and has processed over 6.5 million loan applications which not only shows the extent of its operations but also the market that is available in Nigeria and other parts of the world.
The ultimate goal of the company is likely to be that of a full-fledged bank where it can offer different banking products to its customers and it could probably gain a good foothold in the rest of the African region in due course of time. For now, it has secured a microfinance bank license which it can use to give out current accounts and it also plans to issue debit cards as well.
Africa is one of the largest growing markets at this time with a lot of potential as well. With the payments and banking markets in Europe and the US getting saturated and being dominated by very big players, Africa and Asia seem to be providing the opportunity for the smaller players to enter the market and make their mark. This also helps the financial industry to innovate as it is such startups and smaller companies that are more likely to present innovative solutions to keep pace and beat out the competition rather than the giant banks.
FairMoney, having made its mark in Nigeria, has now expanded its operations into India where it says that it has processed over half a million applications so far. The company also plans to add other products like stock trading, savings accounts, and crypto as well which means that the company has a very strong roadmap lined up for its operations.
With the right direction and with the kind of funding that it has managed to rake up, we can safely say that the company is expected to do well and begin to expand its operations throughout the continent and it will be something that will be interesting to follow up in the coming months.