FairMoney, a credit-led neobank based in Nigeria that aims to provide digital financial services to the unbanked, has raised US$42 million in Series B funding as it prepares to expand into other emerging markets.
Launched in 2017 by Laurin Hainy, Nico Berthozat and Matthieu Gendreau, FairMoney is using loans as a launching pad for its future bank accounts. Its artificial intelligence (AI)-based platform disburses loans to users in seconds, without any human intervention.
By building this automated process, and with a focus on very large countries like Nigeria and India, FairMoney already has close to 1.5 million users across the two markets, and hopes to keep the same fast growth pace.
The startup has now closed a US$42 million Series B round led by Tiger Global Management and also featuring existing investors DST, Flourish Ventures, Newfund, and Speedinvest.
FairMoney began in Nigeria and last year expanded its services to India, where it now has over 3.5 million registered users. FairMoney intends to use the new funds to extend its services and strengthen its position as a digital challenger bank for emerging markets. The company will invest the new capital to hire top global talent and accelerate customer acquisition in current and new markets. They will also focus on developing a suite of innovative digital banking services, including providing current account services.
“We are incredibly excited by the opportunities ahead for FairMoney as we enable more underbanked consumers in emerging markets to access digital financial services. Our vision is to build the financial home for our users and this new round of funding will allow us to go deeper into our core markets. With this funding, we are well equipped to tap into the global talent pool for more A-players with a growth mindset, and who are hungry to build more impactful, customized and mobile-first financial products designed for emerging markets,” said Hainy.
Scott Shleifer, a partner at Tiger Global, said, “We are excited to partner with FairMoney as they build a better financial hub for customers in Nigeria and India. We were impressed by the team and the strong growth to date and look forward to supporting FairMoney as they continue to scale.”