Nigerian FinTech startup, OneFi has secured a US$5 million debt facility for its mobile lending platform, Paylater from Nairobi-based Lendable, a technology-enabled funding provider to African consumer and small business lenders.
OneFi will utilize the funds to develop Paylater new products while transitioning to a full-service digital bank.
Founded in 2016 as a unit of OneFi, the Paylater mobile app specializes in consumer lending by empowering individuals with access to credit, simple payments solutions, high-yield investment opportunities and easy-to-use tools for personal financial management.
The app has been downloaded by over 1 million users and disbursed loans of over US$36 million. But now, the company is looking to get into the unbanked population of Nigeria and provide banking services for them. The startup will be announcing a name change to fit its new business in the first week in April.
“As we are pushing on with our web and digital platforms, we also want to reach out to a segment in the economy that is always talked about but not really catered to,” says Chijoke Dozie, who co-founded OneFi with his brother Ngozi.
The company will also be launching some of its services deploying USSD mobile technology found in simple feature phones rather than the more expensive smartphones with the idea of reaching people that are not using smartphones.
Daniel Goldfarb, the co-founder of Lendable, also added, “Paylater has shown that they know their market intimately, while having an impressive tech and a platform that is scalable. We are expecting 75% growth within nine months.”
The company which has previously secured US$10 million from Net1 UEPS Technologies, Inc. has to date raised a total of US$ 15.8 million in both debt and equity.
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