Ghanaian fintech company Fido has successfully raised $30 million in Series B debt funding, complemented by a $20 million equity injection. This significant financial milestone was led by Dutch entrepreneurial development bank FMO and BlueOrchard, a leading impact investment manager. The funds are set to propel Fido’s expansion into East and Southern Africa, furthering its mission to provide financial services to underserved populations in these regions.
Company Background and Evolution
Founded in 2015 by Tomer Edry, Nir Zepkowitz, and Nadav Topolski, Fido initially launched as a mobile loan platform, offering quick and accessible loans via mobile phones. Over the years, the fintech has evolved its product offerings to include bill payments and savings, aiming to diversify its revenue streams and provide a broader range of financial services to its customers.
Fido has embraced mobile technology and alternative data sources to deliver fast micro-loans to individuals and small to medium-sized enterprises (SMEs) who typically lack access to traditional banking credit. The company’s innovative approach to financial inclusion has positioned it as a key player in the fintech sector across Ghana and beyond.
Expanding Financial Services and Future Plans
As part of its growth strategy, Fido is exploring the integration of new financial products with embedded insurance options. The fintech is planning to introduce packages such as climate insurance and tradesman insurance, which will cater to the specific needs of its diverse customer base. By broadening its range of services, Fido aims to create a more comprehensive financial ecosystem for its users, offering them tools to manage various aspects of their financial lives.
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CEO’s Vision for Financial Inclusion
Alon Eitan, Fido’s CEO, emphasized the company’s commitment to addressing the financial needs of the unbanked and underbanked populations in sub-Saharan Africa. Eitan highlighted that many of Fido’s customers are engaging with financial services for the first time through the platform. “We take them from zero financial footprint to the point where they’ve built a whole financial backbone within an ecosystem where they can get credit, insurance, make savings, buy mobile phones, and do their business,” he stated.
Eitan also noted that Fido’s ability to offer competitive rates is driven by its use of mission-critical AI models throughout the loan life cycle. The fintech’s acquisition model leverages mobile device data and other alternative data sources to assign credit scores to new customers, ensuring a tailored and efficient lending process.
Impact and Future Growth
To date, Fido has served over one million customers, 40% of whom are SMEs, and has disbursed $500 million in loans across Ghana. The fintech’s impact on financial inclusion is evident in its ability to reach and support those who have traditionally been excluded from the formal financial sector.
Looking ahead, Fido aims to surpass the milestone of $1 billion in total loan disbursements by early next year. The newly secured funds will be instrumental in scaling the company’s operations and expanding its customer base across new markets in East and Southern Africa. Eitan concluded, “Our hope is that by some time early next year, we will have crossed a billion in total disbursement and the idea is to use the new funds to then grow further and reach more customers…and have a genuine impact on them.“
Conclusion
Fido’s latest funding round marks a significant step in its journey towards financial inclusion in Africa. With a strong foundation in Ghana and ambitious plans for regional expansion, Fido is well-positioned to continue its mission of providing essential financial services to those who need them most, ultimately contributing to economic growth and stability in the regions it serves.
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