Tech in Africa
In the past decade, the African fintech sector and other key sectors have been vital throughout the region. Today fintech is a viable alternative to traditional banking held in rural and urban areas. Fintech creates an enabling environment that opens the financial sector to value chains the promote efficiency gains. Across most African countries, fintech is improved through financial inclusion, stimulating innovation, and productivity in many sectors.
Numida has raised over US$2.3 million in their latest seed round. Formed in 2017 by Ben Best, Mina Shahid, and Catherine Denis Numida aims to become East Africa’s biggest fintech targeting semi-formal small and micro-businesses.
Uganda fintech startup Numida is working towards tackling this problem in the eastern part of the country. Initially, Numida created a bookkeeping tool that helped microfinance institutions access data from the SMEs and extend unsecured credit to that market segment. Unfortunately, most MFIs still remained hesitant to offer credit facilities to that market segment and revise their underwriting practices. Numida decided to lend credit to businesses on its platform that meet a proprietary score yet lack collateral, loans of up to $3500 in less than 2 hours.
Original article at TechCrunch
