Fintech Farm nabs $7.4M to launch neobanks in Nigeria and other emerging markets – TechCrunch


Fintech farm, Newly He launched a UK-based FinTech startup to set up a digital bank in emerging markets and confirmed that he has raised $ 7.4 million in seed funding to TechCrunch today.

Seed round Guided by Flyer One Ventures and Solid. TA Ventures, Jiji, and AVentures Capital also participated. The company said it plans to use this investment to launch online banks in eight countries over the next 24 months...

Digital banks, online banks, challenger banks, or whatever you might call them, are one of the biggest beneficiaries of VC investment in FinTech... Globally, over the last few years, hundreds have been born trying to challenge existing companies in their respective markets.

In Eastern Europe, for example, Ukrainian neobank Monobank has earned more than 4.5 million customers and more than $ 100 million in revenue in just a few years, the company claims last year. After helping Monobank expand in Europe, one of its co-founders, Dmytro Dubilet, aims to do the same in emerging markets through the new company.

He led the Global FinTech M & A with former KPMGUK director Nick Bezkrovnyy and started Fintech Farm with middleware founder Alexander Vityaz...

In November 2021, Fintech Farm entered its first market, Azerbaijan, using a credit-driven neobank approach to provide loans to customers with poor credit history via cards and mobile apps.

Dubilet said in a phone call with TechCrunch that the operating model for Fintech Farm in Azerbaijan and future markets is to launch the app through a partnership with a local bank.

“Usually it’s a 50-50 partnership with a local bank,” he said when asked how this partnership works... According to him, FinTech Farm Responsible Business Aspects of Things — App and Credit Decision Making Process.. Partner banks have local knowledge and hold licenses and capital for both parties to co-invest in the business. Similarly..

As a UK-based FinTech, FinTech Farm is traditional in countries and Europe where online banks (Monzo, Starling Bank, Revolut) prefer to hold their own banking licenses and provide their own range of financial services. It uses a slightly different approach than the model in. ..

However, given its operational approach, providing financial services to emerging markets, it makes sense to have a different business model. Fintech Farm uses different names for each country it launches, but the design and mascot are the same. A funny lion with a lilac mane...

Two months after being launched as Leobank in Azerbaijan, FinTechfirm issued more than 100,000 cards. We hope to increase this number to one million by the end of the year...

And over the next two years, FinTechfirm plans to enter eight emerging markets across Africa and Asia, the first of which is Nigeria...

“We have plans to launch similar businesses in about eight other markets. a bit Of course it’s bigger than Azerbaijan, “Dubilet said. “In fact, the next market will be Nigeria. We’ve already visited Nigeria several times and it’s one of our favorite countries,” said Dubilet, who could launch in the first quarter of 2022. He added that it is highly sexual.

Meanwhile, despite the company’s original plans to partner with expanding banks in each country, FinTechfirm has been working against it in Nigeria. Currently, the company has its own microfinance banking license. This is the license of most FinTech in the country. Is required To have.. The founder said FinTech Firm will partner with banks to further expand after it has acquired up to 200,000 customers.according to BezkrovnyyIn addition to licensing and infrastructure support, the deciding factor in choosing a partner bank is how fast you can get millions of customers and issue hundreds of millions of dollars in loans. ..

Fintech Farm’s flagship products are cards that act as debit cards that allow users to withdraw funds from their deposits, and credit cards that have a loan function in the customer’s name. Savings accounts, deposits and money transfers are part of the app’s features.

The Nigerian population is hungry for credit, and FinTechfirm’s credit-driven approach helps meet the demands of companies such as (most of the revenue comes from the provision of loans): FairMoney When carbon I’ve been here for years. butUnlike these indigenous Neobanks, Fintech Farm wants to use credit cards to provide cheaper and more accessible credits.

“”in terms of For credit products, there is a “mass credit card” opportunity in Nigeria.Credit cards currently issued by traditional banks Limited In the upper middle class ” Bezkrovnyy said in a statement. “At the same time, the APR of credits provided by online banks and alternative lenders can exceed 100%. We fill this gap, accept customers who are ignored by traditional banks and offer fair interest rates.. “

West African countries, unlike most developed countries, lack an advanced credit bureau system that details people’s credit history, so they are skeptical of how FinTechfirm operates with credit cards. There is a different point of view. But Dubilet is pretty confident, citing the company’s data science team and saying he’s magical “as one of the best teams in the world.”..

As part of this funding round, Vladimir Mnogoletniy, co-founder of Genesis, the parent company of Africa’s online classified advertising platform Jiji, will join Fintech Farm’s board of directors. He is also a partner of Flyer One, co-principal investor.

The founders of Fintech Farm believe that the expertise and understanding of Mnogoletniy and his team are crucial to the growth of the company.

In a statement, Mnogoletniy built one of the largest GMV-based e-commerce platforms, Gigi is looking for a suitable partner to enter neobanking, and investing in fintech firms is strategic for that. Said it was an investment.

Fintech Farm will also spend a lot of money on marketing and hiring talent, especially engineers and data scientists, as it will use that investment to carry out expansion plans.

Fintech Farm nabs $7.4M to launch neobanks in Nigeria and other emerging markets – TechCrunch Source link Fintech Farm nabs $7.4M to launch neobanks in Nigeria and other emerging markets – TechCrunch

The post Fintech Farm nabs $7.4M to launch neobanks in Nigeria and other emerging markets – TechCrunch appeared first on California News Times.

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