Paylend, a Kenyan FinTech startup focused on providing access to finance and digitizing MSMEs in Kenya, has secured $2 million in seed funding from Next Chymia Consulting HK Limited, an Asian company that delivers blockchain applications, consultancy services, and training to global entities.
As part of its next three-year expansion strategy, Paylend will use this investment to expand its operations in Kenya and create new markets in Tanzania, Zambia, and Nigeria.
Paylend, which launched in September 2019, has digitized over 10,000 SMEs and is still growing, with its users enjoying from a variety of services such as access to credit for products and services, as well as crowdfunding options.
Paylend’s mission is to help African SMEs tackle the challenge of continuous funding access while also bridging the data gap between consumers and products and services.
“I believe in impact driven solutions. For a very long time, MSMEs have experienced stunted growth due to lack of efficient business tools or lack of funds. With Paylend, we are able to turn this around by helping these businesses access affordable credit quicker thus allowing them to have liquidity thus ensuring business continuity. Additionally, we form alliances with strategic partners with similar goals to present business tools that ease operations of these MSMEs,” said Eliutherius Juma, CEO, Paylend.
29% of formal SMEs in Africa have access to loans, line of credit or overdraft. The numbers are significantly lower in the informal MSME sector that accounts to over 60% of businesses in the region.
“The value of the credit gap alone in sub-saharan Africa is at $90 billion that requires an increase of over 350% service to close the gap. To tackle these challenges, Africa needs transformational interventions. The formal banking landscape in Sub-Saharan Africa supports around 20% of Africa’s bankable population with the majority of people excluded from access to finance and wealth creation, this is a massive opportunity for FinTechs like Paylend.” Further stated Juma.
Paylend is an Adanian Labs startup, a Pan African smart technologies venture studio on a goal to build, nurture, and scale 300 impact-driven tech startups across Africa.
“We are elated to see the progress that Paylend is making and how it is impacting MSMEs, which is one of the most off grid sectors when it comes to digital transformation and financial inclusion.
At Adanian Labs our mission is to nurture innovative solutions and support innovators like Juma with the necessary resources including tech development, technical capacity, go to market strategies, team mentorship and training as well as access to partnerships and resources.
We are confident that this investment will see Paylend transform MSMEs in Kenya and beyond. Adanian Labs will continue to work with Paylend and support its roll out across Africa.” said Bendon Murgor, CTO, Adanian Labs.
