Jumo, a big data analytics firm which allows cost-efficient provision of loans has raised $6m from Finnfund in form of a debt instrument to support its expansion in Africa and Asia and the development of its platform in order to provide new services for SMEs, small and medium-sized enterprises.
The $6m is part of an overall 24 million USD-loan facility, which was arranged by Gemcorp Capital, an independent emerging markets investment management firm based in London and an early investor in Jumo.
According to Jaakko Kangasniemi, Managing Director of Finnfund, “We are keen to provide funding for Jumo’s expansion and further development. Financial inclusion is very important for development; people need to be able to access quality financial services. It gives them security, enables them to plan their lives more effectively and often gives them an opportunity to start or grow their own business and improve their livelihoods.”
JUMO is a multi-sided platform for Mobile Network Operators and Financial Service Providers and has served over 5 million people in Africa and Asia using behavioural data from mobile usage. Users are able to create a financial identity and gain access to affordable, real-time, financial services fitted to their specific needs. The services are benefitting broad segments of customers including people with low incomes and those who own micro, small and medium enterprises (MSMEs) who have previously been excluded from traditional banking services.
“As an investor, Finnfund brings a sharp focus to achieving meaningful social impact with sustainable profit. That aligns well with our mission,” says Andrew Watkins-Ball, founder and CEO of Jumo. “Having proven our model, we are now expanding our footprint to reach millions more people who are excluded from the formal financial system. With Finnfund we have an investor who supports our view that inequality is unacceptable.”
Jumo has granted more than 20 million loans. Currently, the company employs over 300 people, who are mostly based in South Africa. The main markets include Tanzania, Uganda, Zambia, Kenya, Rwanda, Ghana and Pakistan.