Kenyan fintech startup, has secured $2 million seed investment funding from Next Chymia Consulting HK Limited to support its expansion plans.
Paylend is a fintech startup that provides access to finance to MSMEs and aims to digitise them in Kenya.
Eliutherius Juma, CEO of Paylend
Paylend’s aim is to support MSMEs across Africa by helping them solve the problem of access to continuous capital while also connecting consumers to products and services and thereby bridging the consumer data gap.
Speaking of the business model, Eliutherius Juma, CEO of Paylend was quoted as saying “I believe in impact-driven solutions. For a very long time, MSMEs have experienced stunted growth due to lack of efficient business tools or lack of funds. With Paylend, we are able to turn this around by helping these businesses access affordable credit quicker thus allowing them to have liquidity, thus ensuring business continuity.”
Paylend has digitised over 10,000 SMEs since its launch in 2019, and its users benefit from a variety of services such as credit for products and services and also crowdfunding.
With this investment, Paylend hopes to expand its business in Kenya and also expand into new markets in Tanzania, Zambia, and Nigeria.
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
Next Chymia Consulting HK Limited, a HongKong-based firm that provides blockchain applications, consultation services, and training to global corporations, has invested $2 million in Paylend, a Kenyan fintech startup focused on providing access to credit and digitizing MSMEs in Kenya.
“I believe in impact-driven solutions. For a very long time, MSMEs have experienced stunted growth due to lack of efficient business tools or lack of funds. With Paylend, we are able to turn this around by helping these businesses access affordable credit quicker thus allowing them to have liquidity thus ensuring business continuity. Additionally, we form alliances with strategic partners with similar goals to present business tools that ease operations of these MSMEs. The value of the credit gap alone in sub-saharan Africa is at $90 billion that requires an increase of over 350% service to close the gap. To tackle these challenges, Africa needs transformational interventions. The formal banking landscape in Sub-Saharan Africa supports around 20% of Africa’s bankable population with the majority of people excluded from access to finance and wealth creation, this is a massive opportunity for FinTechs like Paylend,” Eliutherius Juma, CEO, Paylend said.
As part of its next three-year expansion strategy, Paylend will use this investment to expand its operations in Kenya and create new markets in Tanzania, Zambia, and Nigeria. Paylend is a product of Adanian Labs, a Pan African smart technologies venture studio on a goal to establish, nurture, and scale 300 impact-driven tech firms across Africa.
Why The Investors Invested
Paylend has digitized over 10,000 SMEs since it was founded. In Africa, only 29% of formal SMEs have access to loans, lines of credit, or overdrafts. The informal MSME sector, which accounts for over 60% of businesses in the region, has significantly lower numbers.
“We are absolutely delighted to partner and support Paylend. Our vision is to ensure that no one is left behind in Africa when it comes to access to technology that can potentially facilitate wealth creation. We believe in the power of technology in transforming communities, and Paylend’s model is doing that at a micro level, which is where a lot of work is needed if we are to drive digitization. We have seen first-hand the potential that the informal sector in Africa has in solving key society issues and we are excited to be able to support and create impact,” Kenji Sasaki, CEO, Next Chymia Consulting said.
A Look At What The Startup Does
Paylend, which launched in September 2019, has digitized over 10,000 SMEs and is still growing, with its users benefiting from a variety of services such as access to credit for products and services, as well as crowdfunding options. Paylend’s objective is to help African SMEs tackle the challenge of continuous finance access while also bridging the data gap between consumers and products and services. Paylend’s strategy provides for last-mile customer data collecting, allowing for a deeper insight of consumer demands while also adding value to the SMEs ecosystem.
Paylend is an Android app for consumers and small businesses that includes new features such as access to credit for enterprises, crowdfunding tools, and prepayment of products and services for consumers.
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. He is also an award-winning writer
