African fintech has scored yet one more main funding win: Jumo, a five-year outdated fintech startup has raised $55 million in debt and fairness funding.
The newest funding spherical noticed participation from current buyers together with Goldman Sachs, Odey Asset Administration and Leapfrog Investments in addition to new unnamed buyers. It brings Jumo’s whole funding raised to just about $150 million and follows two main rounds in 2018 when the corporate raised $64.5 million.
Though Goldman Sachs is finest generally known as a Wall Avenue fixture, it has been steadily constructing a powerful portfolio of African startup investments in the previous few years. It has beforehand led an funding spherical in Jumo, but in addition e-commerce chief Jumia, Kenyan agritech startup Twiga and Kobo 360, a logistics startup in Nigeria. Final month the Wall Avenue stalwart acquired a banking license to function in South Africa.
Jumo operates in 5 African international locations—Ghana, Uganda, Kenya, Tanzania, Zambia—the place it companions with monetary service suppliers and telecoms operators to supply lending, financial savings and insurance coverage companies to their huge buyer bases. The corporate says it has disbursed $1.eight billion in loans since being based and has now served 15 million prospects.
Jumo’s South African founder Andrew Watkins-Ball, says the corporate’s “subsequent section” will see it develop extra merchandise and open up store in Nigeria and Côte d’Ivoire this yr. The corporate, which already operates in Pakistan, additionally plans to launch in India this yr as effectively.
The fund elevate comes amid intense curiosity within the potential of monetary know-how startups in Africa, notably from international funds giants. In a landmark deal final November, Visa bought invested $200 million for a 20% stake in Nigerian funds processor, Interswitch confirming the corporate as Africa’s first fintech unicorn.
There’s additionally marked curiosity from China too: OPay and PalmPay, two funds companies working in Nigeria, acquired over $210 million in funding, predominantly from Chinese language buyers, over a five-month interval final yr.
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