OneFi secures $5M financing from Lendable to transition Paylater into a full service digital bank


One Finance Limited [OneFi], the company behind Paylater has secured a $5M debt facility from New York and Nairobi-based funding provider Lendable to bolster Paylater’s loan book and transition it into a full service digital bank.

With the new funding, Paylater now projects to double in size within Nigeria before entering new markets in 2019. The firm has over $60M disbursed across 750,000 loans, approves over 1,500 loans a day with an average of $80 per loan.

According to Chijioke Dozie, OneFi CEO in a statement, “Securing this investment from Lendable represents the first internationally-backed commercial debt transaction for us, marking an important stage of our company’s development as we look to serve the “next billion”.

“As we transition into a full service digital bank, this financing will allow us to execute on a number of new products. This includes our partnership with Visa, whereby we’ll be providing credit via QR codes at supermarkets, clinics and on public transport in H1 2019.”  

Leveraging the power of the mobile phone, of which there are 150M active connections in Nigeria, Paylater is aiming to help millions of customers transact at their point of need, and drive offline payments via lower cost QR installations.

Launched in 2016 by Nigerian finance entrepreneurs Chijioke and Ngozi Dozie, paylater provides hassle-free loans without need for human intervention or bias in decision making.

The company started as a one-stop-shop offering additional products such as savings, bill payments and credit reporting to now a full service bank with over 1 million downloads and over 1,575 loans approved daily.

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The investment from Lendable comes just two months after the company secured Africa’s first credit rating for a fintech platform, achieving a “BB” Rating with a “Stable Outlook’ from Global Credit Rating Co.

OneFi’s investment marks Lendable’s first Nigerian deal signed. Lendable is backed by Omidyar NetworkKawiSafi Ventures, FMO, and other leading institutions.

In January 2019, Lendable closed its second round of financing from institutional investors to expand access to credit across sub-Saharan Africa. In August 2018, the funder received a $4.5M Dutch Development Bank a convertible grant to fund loans from its alternative lender clients across Africa to small and micro enterprises and low-income consumer borrowers.

In October 2017, Lendable raised $6.5m series A round to launch in Tanzania, Rwanda.

In March 2017, Lendable secured a $550k debt financing for Azuri Technologies Distributor, Raj Ushanga House, a Pay-as-you-go (PayGo) solar energy solutions to accelerate its rural roll-out of scalable solar power in Kenya. And in the same year in September, it invested $1.5 million into lease-to-own motorcycle taxi lender Watu Credit to help it expand across the country

OneFi is another incredible story.

” At Lendable, we build financial products to enable lending companies to scale, and we are proud to support OneFi’s mission of providing credit to the underbanked consumer and SME segments in Nigeria,” said
Daniel Goldfarb, Lendable CEO. “They are an incredible example of a company that has found product market fit in a massive market, and are working tirelessly to provide a best-in-class service to those customers.”