December 7, 2019 News Magazine

Credit startup Migo expands to Brazil on $20M raise and Africa growth

After growing its lending business in West Africa, emerging markets credit startup Migo is expanding to Brazil on a $20 million Series B funding round led by Valor Group Capital.

The San Mateo based company — previously branded Mines.io — provides AI driven products to large firms so those companies can extend credit to underbanked consumers in viable ways.

That generally means making lending services to low-income populations in emerging markets profitable for big corporates, where they previously were not.

Founded in 2013, Migo launched in Nigeria, where the startup now counts fintech unicorn Interswitch and Africa’s largest telecom, MTN, among its clients.

Offering its branded products through partner channels, Migo has originated over 3 million loans to over 1 million customers in Nigeria since 2017, according to company stats.

“The global social inequality challenge is driven by a lack of access to credit. If you look at the middle class in developed countries, it is largely built on access to credit,” Migo founder and CEO Ekechi Nwokah told TechCrunch.

“What we are trying to do is to make prosperity available to all by reinventing the way people access and use credit,” he explained.

Migo does this through its cloud-based, data-driven platform to help banks, companies, and telcos make credit decisions around populations they previously may have bypassed.

These entities integrate Migo’s API into their apps to offer these overlooked market segments digital accounts and lines of credit, Nwokah explained.

“Many people are trying to do this with small micro-loans. That’s the first place you understand risk, but we’re developing into point of sale solutions,” he said.

Migo’s client consumers can access their credit-lines and make payments by entering a merchant phone number on their phone (via USSD) and then clicking on “Pay with Migo”. Migo can also be set up for use with QR codes, according to Nwokah.

He believes structural factors in frontier and emerging markets make it difficult for large institutions to serve people without traditional credit profiles.

“What makes it hard for the banks is its just too expensive,” he said of establishing the infrastructure, technology, and staff to serve these market segments.

Nwokah sees similarities in unbanked and underbanked populations across the world, including Brazil and African countries such as Nigeria.

“Statistically, the number of people without credit in Nigeria is about 90 million people and its about 100 million adults that don’t have access to credit in Brazil. The countries are roughly the same size and the problem is roughly the same,” he said.

On clients in Brazil, Migo has a number of deals in the pipeline — according to Nwokah — and has signed a deal with a big-name partner in the South American country of 290 million, but could not yet disclose which one.

Migo generates revenue through interest and fees on its products. With lead investor Valor Group Capital, new investors Africinvest and Cathay Innovation joined existing backers Velocity Capital and The Rise Fund on the startup’s $20 million Series B.

Increasingly, Africa — with its large share of the world’s unbanked — and Nigeria — home to the continent’s largest economy and population — have become proving grounds for startups looking to create scalable emerging market finance solutions.

Migo could become a pioneer of sorts by shaping a fintech credit product in Africa with application in frontier, emerging, and developed markets.

“We could actually take this to the U.S. We’ve had discussions with several partners about bringing the the technology to the U.S. and Europe,” said founder Ekechi Nwokah. In the near-term, though, Migo is more likely to expand to Asia, he said.

 


Source: TechCrunch

Tags: in Uncategorized
Banner
Related Posts

Facebook staff demand Zuckerberg limit lies in politcal ads

October 28, 2019

October 28, 2019

Submit campaign ads to fact checking, limit microtargeting, cap spending, observe silence periods, or at least warn users. These are...

Watch Blue Origin’s 10th New Shepard mission launch a science-loaded capsule to space

January 23, 2019

January 23, 2019

Blue Origin, the rocket company founded by Amazon’s Jeff Bezos, is about to undertake the 10th launch of its New...

Unreal Engine 4 support is coming to HoloLens 2

February 24, 2019

February 24, 2019

Microsoft closed out today’s big HoloLens 2 debut with a surprise appearance by Epic Games CEO, Tim Sweeney. The gaming...

Polestar unveils its all-electric response to the Tesla Model 3

February 27, 2019

February 27, 2019

Volvo’s standalone electric performance brand Polestar introduced Wednesday its first all-electric vehicle — a five-door fastback that is gunning for...

Axon adds license plate recognition to police dash cams, but heeds ethics board’s concerns

October 23, 2019

October 23, 2019

Law enforcement tech outfitter Axon has announced that it will include automated license plate recognition in its next generation of...

Nigeria’s Gloo.ng drops consumer e-commerce, pivots to e-procurement

March 11, 2019

March 11, 2019

Nigerian startup Gloo.ng is dropping consumer online retail and pivoting to B2B e-procurement with Gloopro as its new name. The...

The 7 most important announcements from Microsoft Ignite

November 4, 2019

November 4, 2019

It’s Microsoft Ignite this week, the company’s premier event for IT professionals and decision-makers. But it’s not just about new...

Indonesia’s vegetable hawkers are going digital thanks to a new startup

May 28, 2019

May 28, 2019

Few things are more interesting that the convergence of old and new. It’s with that in mind that we once...

Voxel51 raises $2 million for its video-native identification of people, cars and more

August 8, 2019

August 8, 2019

Many companies and municipalities are saddled with hundreds or thousands of hours of video and limited ways to turn it...

Tinder’s new personal security feature can protect LGBTQ+ users in hostile nations

July 24, 2019

July 24, 2019

A new security feature rolling out on Tinder will help to protect LBGTQ+ users who travel to dozens of nations,...

Amazon introduces new $99 Eero mesh Wifi routers

September 25, 2019

September 25, 2019

Amazon is launching a new generation of Eero router, the first new iteration of Eero hardware since it acquired the...

Apple introduces the Apple Watch Series 5 with always-on display

September 10, 2019

September 10, 2019

Apple introduced some new Apple Watch models at a press conference. The Apple Watch Series 5 has an always-on display....

Khatabook raises $25M to help businesses in India record financial transactions digitally and accept online payments

October 1, 2019

October 1, 2019

Even as tens of millions of Indians have come online for the first time in recent years, most businesses in...

A simple data analysis disproves the argument for building a border wall

January 27, 2019

January 27, 2019

Ken Miller Contributor Ken Miller is an investor, writer and advisor to several technology companies and venture capital firms. Previously...

Luna Display now supports older Macs as a secondary screen

October 17, 2019

October 17, 2019

Secondary display companies are among the latest to get a taste of Sherlocking, after Apple introduced Sidecar as part of...

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *