Since 2015, Ghana-based fintech Fido has extended credit to thousands of users via mobile phones, and the company is now looking for new ways to expand across Africa.
Fido announced that it will add savings and payment options to its portfolio later this year, as well as extend into Uganda, its second market, as it aims to extend throughout the continent.
The fintech is also planning to create a second research and development facility in Accra, Ghana’s capital, to complement its Israel office and enable it to automate much of its processes to assure long-term viability.
The startup’s intentions come on the heels of a $30 million equity investment and unknown loan funding that the startup received in a Series A round-headed by Israel-based private equity firm Fortissimo Capital, with involvement from Harvard alumni-led venture capital firm Yard Ventures. This takes the total amount of equity raised to $38 million.
Fido, established by Nadav Topolski, Tomer Edry, and Nir Zepkowitz, provides consumers and small businesses with mobile loans of up to $250. The loans can be repaid in a single or numerous installments over a six-month period.
Users may easily set up a Fido account, according to Eitan, because digital registration takes only approximately 10 minutes.
Customers must upload headshots and copies of their identification cards to register, which are subsequently evaluated by Fido’s image recognition algorithm and cross-checked against existing databases. This multistep authentication, according to Eitan, prevents scams.
He went on to say that the fintech uses credit-scoring technology to figure out how much it can offer to borrowers.
According to Eitan, the fintech has provided over $1.5 million in loans to 350,000 Ghanaian customers. This sum is expected to rise as it expands into additional African markets, beginning with Uganda.
Fido is supported by a team of 65 personnel, including digital debt collectors who, according to Eitan, follow up on delayed payments in an ethical manner.
Techbuild’s Take
The financial industry has been transformed by fintech. The financial industry has spawned new and innovative concepts targeted at enhancing user experience and assisting financial institutions in being more productive and providing better service since fintech startups started to emerge.
Fintech and innovation can help to increase financial inclusion. More platforms are entering the market and offering services to the underbanked and unbanked.
Fintech companies such as Fido have made it feasible to take loans without utilizing paper from the application procedure to the disbursement of the loan amount.
Fintechs have transformed everything, including the verification procedure, into a digital format. Users can not only obtain financing digitally, but can also upload their documents and any other essential information. Verification of users’ documents will take place digitally, saving users time and effort.
The verification procedure will be completed in minutes thanks to smooth and smart procedures. Fido emphasizes legitimate authentication to prevent fraud, and the company is expanding its platform to include additional services for a better customer experience.
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