FMO, BlueOrchard Back Ghanaian Digital Bank Fido in $30M Round
TLDR
- Fido, Ghanaian fintech, secures $30 million Series B funding for expansion in East and Southern Africa.
- Fido offers financial services to individuals and small businesses in Africa through its digital platform, including loans, savings, bill payments, and smartphone financing.
- Fido's innovative approach utilizes mobile technology and alternative data for instant micro-loans up to $500 for individuals and larger amounts for businesses, maintaining a low default rate below 4%.
Ghanaian fintech company Fido has raised $30 million in Series B funding to fuel its expansion across East and Southern Africa. The funding round, led by global impact investor BlueOrchard and Dutch development bank FMO, includes $20 million in equity.
Fido provides individuals and small businesses across Africa with financial services via its digital platform. It began as a mobile loan provider and has since diversified into savings, bill payments, and smartphone financing.
The fintech’s use of mobile technology and alternative data sources allows it to provide instant micro-loans without collateral, filling a gap left by traditional financial institutions. Its loans range from $20 to $500 for individuals, with larger amounts available for businesses, at interest rates between 7% and 12%. Fido claims its credit scoring system has kept its default rate below 4%.
Key Takeaways
Online credit services have emerged as a quick and accessible funding option for small businesses and individuals typically neglected by conventional banks. These digital platforms have become crucial for millions lacking full banking access, and their popularity is expected to continue rising. As a result, the digital lending sector in the Middle East and Africa is projected to expand to $2 billion within five years, quadrupling its size since 2021. Recognizing this potential, Fido, a financial technology company from Ghana, aims to capitalize on this trend. The fintech is planning to venture into new territories in East and Southern Africa, seeking to tap into this growing market opportunity.
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