Unlocking the $2 Billion Market Opportunity in Middle East and Africa: Fido's Expansion Plans with $30 Million Series B Funding
Digital lending platforms are revolutionizing access to credit for underbanked microenterprises and individuals in the Middle East and Africa. As the market value skyrockets towards $2 billion in the next five years, Fido, a Ghanaian fintech, is seizing this opportunity with a $30 million Series B funding round led by global impact investment manager BlueOrchard and Dutch entrepreneurial development bank FMO.
Founded in 2015 by Nadav Topolski, Tomer Edry, and Nir Zepkowitz, Fido initially offered mobile phone loans but has since diversified its product offerings to include savings, bill payments, and smartphone financing. The company, along with other players like Branch and Tala, leverages mobile technology and alternative data sources to provide instant micro-loans to individuals and small businesses that struggle to access credit from traditional banking institutions.
Unlike traditional banks that require collateral and involve lengthy processes, Fido offers loans ranging from $20 to $500 to individuals and higher amounts to businesses, with repayment terms of six months and interest rates between 7% and 12%. With a default rate below 4%, Fido attributes its success to its innovative credit scoring system powered by AI models.
To date, Fido has served over a million customers, including 40% small businesses, and disbursed over $500 million in loans across Ghana and Uganda. The company's goal is to reach more customers and have a genuine impact on their financial well-being by leveraging the new funding to expand further.
In conclusion, digital lending platforms like Fido are transforming the financial landscape in Africa and providing much-needed access to credit for underserved populations. By tapping into this growing market, investors and individuals alike can benefit from the innovative solutions offered by fintech companies like Fido.