Jumo, a fast-rising Cape Town-based fintech start-up that specializes in offering full technology stack for partners to develop savings, lending, and insurance products for customers in the ever-bourgeoning modern African market, has sealed a $55 Million VC round from some investors.
Launched in 2014, Jumo understands that millions of Africans are “unbanked,” that is, they have little or no savings in the banks. Hence, they do not have opportunities to request loans to support their businesses. Andrew Watkins-Ball, the CEO of Jumo, came up with a solution to this problem. He developed Jumo to act as a funnel that manages the acquisition and retention processes of customers, develop strategic systems that use alternative signals to determine credit assessment, and build up customers’ profiles that reduce credit risk. With this approach, banks will not handle the process of disturbing customers for payment again, and they will have a worthwhile profit from the small loans given to the start-ups via fintech companies like Jumo.
To this effect, banks and other financing organizations trooped in to collaborate with Jumo to provide loans to entrepreneurs and start-ups. Interestingly, according to the TechCrunch, Jumo has helped more than nine million entrepreneurs and originated more than $700 Million in loans. Besides, Jumo contributes to the reduction in the unemployment rate as it has more than 350 employees across its offices in Africa, Europe, and Asia.
In 2018, Jumo raised a whopping $52 Million from the likes of Proparco – an attachment to Finnfund (French Development Agency), Gemcorp Capital, Vostok Emerging Finance, LeapFrog Investment, and Goldman Sach, which was the lead. With this investment, Jumo was able to have its presence in Singapore and some other Asian Countries. Furthermore, Jumo used the money to expand its selection of productions in Africa and increases its partnership with more African banks.
Recently, most of the investors that partnered with Jumo in 2018 have, again, inked their signatures on contract paper to provide more support for Jumo. In this VC round, a sum of $55 Million is raised to support the growth of this successful fintech company. Andrew Wakins-Ball said, “I’m excited for our next phase. This backing will help us build a better business and break new ground.”
Presently, Jumo has facilitated more than $1 billion in loans. The company plans to use this new investment to expand into two African Countries (Nigeria and Ivory Coast) and two Asian Countries (Bangladesh and India).
“The differences between countries like Ghana, Tanzania and Zambia are as great as those between India, China, and Indonesia, so we’ve had to learn to use our platform, which we built to be flexible and localize in order to fit the customer,” said the CEO of Jumo, Andrew Watkins-Ball.