CIM Financial Services Ltd (Cim Finance), a major Mauritian consumer and SME finance provider, has agreed to buy a minority position in Fundkiss Technologies Limited (Fundkiss), which has grown into a well-known peer-to-peer lending platform for local SMEs.
“This strategic partnership will not only allow us to accelerate the pursuit of our mission to simplify and democratise financing for SMEs, but also continue to offer a great lending experience for our community of lenders. The partnership will also allow to strengthen our operational capabilities,” Paul Perrier, CEO of Fundkiss said.
As part of the platform’s growth objectives, Cim Finance’s investment will help Fundkiss finance its technology development, better structure its marketing approach, and strengthen its team. Cim Finance will have a representative on the Board of Directors of Fundkiss.
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The latest funding is another milestone for Fundkiss, after being the first FinTech to operate under EDB’s Regulatory Sandbox License (RSL) in 2019 and earn a Peer-to-Peer Lending license from the FSC in April 2021.
Why The Investor Invested
Fundkiss has achieved considerable traction since it was founded in 2019. More than 2,900 lenders have registered on Fundkiss, resulting in a total loan disbursement of Mur100,158,500 ($2.3m) covering 192 projects, by November 2021.
“We are delighted to become a strategic partner of Fundkiss. Both our companies strongly believe that a prospering SME sector lies at the heart of sustainable and inclusive economic growth. We share a common purpose and a strong desire to improve borrowers’ convenience through the use of technology and innovation. This move will allow Cim Finance to reach a greater number of SMEs, enhance our knowledge of their needs and continue to develop further innovative forward-thinking and customised offerings,” Mark van Beuningen, the Group CEO of Cim Finance said.
As part of the deal, Cim Finance will also finance SME projects on the Fundkiss platform, fundkiss.mu, bringing another institutional investor to the platform’s growing community of lenders. SMEs will be able to obtain funds more swiftly and simply thanks to Cim Finance and Fundkiss’s collaboration.
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Founded in 1987, Cim Finance has around 750 staff, 7 locations, and 90 in-store counters throughout Mauritius and Rodrigues, and has been in the credit market since 1987. The company is the first non-bank financial organization in Sub-Saharan Africa to be a key member of Visa, MasterCard, and Union Pay, having launched its leasing activities in 1996 for the financing of vehicles and equipment. Cim Finance began factoring in 2004 and then expanded into worldwide factoring in 2019. The company is listed on the official market of the Mauritius Stock Exchange and is licensed to offer acquiring and issuing card services by the Bank of Mauritius.
A Look At What Fundkiss Does
Fundkiss is Mauritius’ first peer-to-peer lending platform, allowing SMEs to borrow money directly from individuals and institutions. This was made feasible by the Economic Development Board of Mauritius issuing a Regulatory Sandbox License (RSL) in 2019. Since then, Fundkiss has aided small and medium-sized businesses with expanding their operations while providing meaningful investment options for individual and institutional investors. The Financial Services Commission (FSC) of Mauritius gave us an official Peer-to-Peer Lending license in April 2021.
Fundkiss P2P lending Fundkiss P2P lending
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
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