This year seem to be kicking off well for startups across Africa even as some are reeling under the pressure of keeping their heads above waters. A great example of outstanding raise this year is the $55 million fresh funding secured by South Africa’s fintech startup Jumo, a firm that shook the continent with its bold raise of $52 million just last year which was followed up with an additional USD 12.5 million three months later.
Read also:South Africa’s Shoprite Joins Business With Equities Property Fund
Jumo’s seeming effortless attraction to venture capitalists has been the talk across the continent for a while until it announced the closure of another massive funding round recently bagging a fresh $55 million which it says is for expansion into new markets and to launch new products in Africa and Asia. This latest investment shoots Jumo’s total funding up to $158 million, making it one of the best-funded tech startups on the African continent. Jumo had something of a swashbuckling year in 2018, raising $67.5 million across three funding rounds.
According to the company, the latest investment comes from new and existing Jumo investors including Goldman Sachs, Odey Asset Management, and LeapFrog Investments.
Read also:MasterCard Names 12 African EdTech Firms for Innovative Learning in ICT
Founded in 2014 by Andrew Watkins-Ball who currently leads the startup as CEO, Jumo specializes in social impact financial products, offering loans and saving options to those who are neglected by existing financial systems, and particularly small businesses. The company leverages mobile networks to provide loans and savings products to its customers. The digital financial services company has developed a credit-scoring algorithm that helps customers to unlock the value of their digital footprints by giving an accurate estimation of their creditworthiness.
The startup bundles products from various banks and sells it to businesses on the lookout for credit. The entire process of lending is facilitated through mobile networks, where the startup has tied up deals with a number of service providers.
Given high feature phone usage in key markets as well as customer sensitivity to data costs, the company offers transactional capability via basic USSD, web or app to allow seamless access and usage of the platform and products. To date, Jumo claims to have helped millions of consumers across its six markets in Africa and originated more than $1 billion in loans, having started out in Tanzania.
Since September 2018 when the startup first announced expansion into Asia via Pakistan, Jumo has moved its headquarters to Singapore while also growing to no less than 10 million people saving or borrowing from its platform. At the last count, the company had some 350 staff across 10 offices in Africa, Europe, and Asia.
The Founder CEO Watkins-Ball expressed his excitement with regards to the startup’s latest funding announcement saying that “this backing will help us build a better business and break new ground. The strong vote of confidence, along with the world-class tech talent we now have in the business, means we can achieve exceptional outcomes for our partners and customers,” enthuses Watkins-Bell who has close to two decades in finance and investing under his belt. As earlier mentioned, Jumo’s latest funding is expected to drive expansion into new markets and facilitate the launching of new products in Africa and Asia.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry