Digital lender Branch International has today announced its largest commercial paper issuance to date, raising Ksh500 million, following a Ksh350 million issuance in 2018 and a Ksh200 million issuance in 2017.
All commercial paper issuances have been arranged by the Centum-owned advisory firm, Barium Capital. This latest investment will be used to continue to expand Branch’s services in Kenya.
Speaking
after the close of the issue, Teresia Muthoni, the Managing Director of Barium
Capital said, “We continue to be impressed by Branch’s approach to credit
management despite the very competitive Kenyan mobile lending space which for
us remains the fundamental test of issuer quality. This, coupled with the
caliber of Branch’s leadership team, is what has allowed the firm to access the
private capital markets much earlier than other companies in their industry and
position themselves for the spectacular growth they’ve achieved to date.”
Previously, the firm garnered more than Ksh7.1 billion from top international investors, including the World Bank Group’s International Finance Corporation and Andreessen Horowitz whose previous investments have included Airbnb, Instagram, and Facebook.
In addition to the new capital, Branch is also announcing that it has now issued its 10 millionth loan in Kenya and is on a mission to expand financial access to the 70% of customers worldwide who, according to the World Bank, are underserved by traditional financial institutions.
Founded in 2015, Branch has operations in Kenya, Nigeria, Tanzania, and Mexico, and will launch in India this year.
Branch’s approach to commercial paper issuance has been largely ground breaking. It was one of the first early-stage technology companies to successfully raise debt in the local market.
Branch issues tens of thousands of loans per day and has disbursed more than Ksh25 billion in Kenya. According to customer surveys, most Branch loans are used for small business start up costs and ongoing business investment.
“It’s very exciting to be serving millions of Kenyans and providing them with access to essential financial services,” commented Daniel Szlapak, Head of Global Operations for Branch. “The huge growth and success in the Kenya market has positioned the company for strong global expansion,” he added.
Branch has raised more than $100 million in investment from top-tier firms including Andreessen Horowitz, Trinity Ventures, IFC, Victory Park Capital, Barium Capital, 8.vc, Khosla Ventures and CreditEase.