Credit startup Migo expands to Brazil on $20M raise and Africa growth

Must Read

Audi electrifies FC Bayern Munich (Photos)

Enabled by the partnership with Audi: FC Bayern Munich is the first international football club to drive using electric...

How to Apply for Government N75Bn MSME Survival Fund

The Federal Government of Nigeria is set to commence nationwide implementation of two MSMEs initiatives namely, the MSME Survival...

#BBNaija: Betway Launches New Predict and Win Promo

Betway, premium gaming and online entertainment brand, and the headline sponsor of Big Brother Naija has launched a new...
- Advertisement -

After growing its lending business in West Africa, emerging markets credit startup Migo is expanding to Brazil on a $20 million Series B funding round led by Valor Capital Group. 

The San Francisco-based company — previously branded Mines.io — provides AI-driven products to large firms so those companies can extend credit to underbanked consumers in viable ways.

Credit startup Migo expands to Brazil on $20M raise and Africa growth - Brand Spur

That generally means making lending services to low-income populations in emerging markets profitable for big corporates, where they previously were not.

- Advertisement -

Founded in 2013, Migo launched in Nigeria, where the startup now counts fintech unicorn Interswitch and Africa’s largest telecom, MTN, among its clients.

Offering its branded products through partner channels, Migo has originated more than 3 million loans to over 1 million customers in Nigeria since 2017, according to company stats.

“The global social inequality challenge is driven by a lack of access to credit. If you look at the middle class in developed countries, it is largely built on access to credit,” Migo founder and CEO Ekechi Nwokah told TechCrunch.

“What we are trying to do is to make prosperity available to all by reinventing the way people access and use credit,” he explained.

- Advertisement -

Migo does this through its cloud-based, data-driven platform to help banks, companies and telcos make credit decisions around populations they previously may have bypassed.

These entities integrate Migo’s API into their apps to offer these overlooked market segments digital accounts and lines of credit, Nwokah explained.

“Many people are trying to do this with small micro-loans. That’s the first place you understand risk, but we’re developing into point of sale solutions,” he said.

Migo’s client consumers can access their credit lines and make payments by entering a merchant phone number on their phone (via USSD) and then clicking on “Pay with Migo.” Migo can also be set up for use with QR codes, according to Nwokah.

Read Also:  WHY YOU SHOULD REALLY START SAVING
- Advertisement -

He believes structural factors in frontier and emerging markets make it difficult for large institutions to serve people without traditional credit profiles.

“What makes it hard for the banks is its just too expensive,” he said of establishing the infrastructure, technology and staff to serve these market segments.

Nwokah sees similarities in unbanked and underbanked populations across the world, including Brazil and African countries such as Nigeria.

“Statistically, the number of people without credit in Nigeria is about 90 million people and its about 100 million adults that don’t have access to credit in Brazil. The countries are roughly the same size and the problem is roughly the same,” he said.

Read Also:  FBN Holdings Plc releases 2019 annual report, PAT grew 4% to N61.9bn

On clients in Brazil, Migo has a number of deals in the pipeline — according to Nwokah — and has signed a deal with a big-name partner in the South American country of 210 million, but could not yet disclose which one.

Migo generates revenue through interest and fees on its products. With lead investor Valor Capital Group, Velocity Capital and The Rise Fund joined the startup’s $20 million Series B.

Increasingly, Africa — with its large share of the world’s unbanked — and Nigeria — home to the continent’s largest economy and population — have become proving grounds for startups looking to create scalable emerging market finance solutions.

Migo could become a pioneer of sorts by shaping a fintech credit product in Africa with application in the frontier, emerging and developed markets.

“We could actually take this to the U.S. We’ve had discussions with several partners about bringing the technology to the U.S. and Europe,” said founder Ekechi Nwokah. In the near-term, though, Migo is more likely to expand to Asia, he said.

- Advertisement -
Credit startup Migo expands to Brazil on $20M raise and Africa growth - Brand SpurCredit startup Migo expands to Brazil on $20M raise and Africa growth - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Credit startup Migo expands to Brazil on $20M raise and Africa growth - Brand SpurCredit startup Migo expands to Brazil on $20M raise and Africa growth - Brand Spur

Latest News

Ogun Community thanks Airtel for Restoring Electricity 15 Years after disconnection

Leading telecommunications services provider, Airtel Nigeria, has been commended by members and leaders of a community in Ogun State,...

RAK Foundation collaborate with Green Janitors, Launch First Recycling Plant In Badagry

Mr Mobolaji Ogunlende, the founder of Real Act of Kindness (RAK) Development Foundation on Thursday launched the first recycling plant in Badagry, Lagos State...

African Consumer Care enters Nigerian surface cleaning market segment with Dazzl Disinfectant

African Consumer Care, a subsidiary of Dabur International has strengthened the Dabur footprint in Nigeria with the introduction of the surface cleaning product, Dazzl...

No hiding place for traditional banking dinosaurs

On the 4th of May, the first day after strict COVID-19 lockdowns were lifted in Lagos, customers rushed to bank branches all over the...

Mouka Rewards Kids in Dreamtime Competition, Receives Consumers First Choice Brand Award

Mouka, Nigeria’s leading brand of mattresses and other bedding products is raising awareness for the importance of quality sleep to the cognitive development of...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Credit startup Migo expands to Brazil on $20M raise and Africa growth - Brand SpurCredit startup Migo expands to Brazil on $20M raise and Africa growth - Brand Spur