Numida, a Ugandan-based fintech startup has closed a US$2.3 million seed funding to expand.
The funding round was led by MFS Africa and the startup will also be looking at launching new products.
Other participants in the funding round include Segal Family Foundation, Equilibria Capital and other angel investors.
The fintech startup was launched in 2017 by the trio of Catherine Denis, Mina Shahid and Ben Best.
Numida initially launched by allowing microfinance institutions to offer unsecured credit to ventures that are semi-formal, however, the startup pivoted in late 2019 to begin offering direct micro and small business lending.
With this new offering, business owners in Uganda have access to an unsecured capital loan in not more than two hours with a value up to US$3,500.
Owing to its propriety credit score, the fintech startup provides risk-based pricing on business owner’s loans.
To date, Numida has offered over US$2 million in unsecured credit to micro and small business owners in Uganda numbering up to 3000.
Speaking on the funding raised, Mina Shahid, the Chief Executive Officer (CEO) of Numida commented:
“With all the data that we’re collecting from traditionally thin-file businesses, we are well-positioned to provide additional financial services through the Numida app such as payments, micro-insurance, and deposits in the future,”
The fintech startup is looking to tap into the pan-African experience of MFS Africa to launch digital products for its clients.
Managing Director at MFS Africa, Patrick Gutmann said, “MFS Africa is committed to supporting this critical segment, and offering a lending solution is a natural extension of our services, and by partnering with Numida, this can become a reality.
Numida has been a long-standing partner of MFS Africa, and we have followed its progress with much excitement”
Patrick said that there is a big opportunity for MFS Africa and the fintech startup to collaborate in growing Numida’s current loan.
According to Patrick, there is an opportunity for the fintech’s solution to get extended across the footprint of MFS Africa.
The fintech startup supports semiformal micro and small businesses with digital working capital loans of $100-$5000 disbursed via mobile money.
Entrepreneurs can access credit in as little as 2 hours from the comfort of their business. According to the website, no paperwork nor collateral is required.
The startup’s proprietary underwriting process enables the startup to verify businesses remotely and grow loan limits appropriately ensuring that Numida and our clients succeed.
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