Ghanaian fintech Fido has raised $30 million Series B funding to expand to new markets in East and Southern Africa, after a decade of operations in Ghana, West Africa.
Dutch development finance institution FMO invested $10 million equity investment in FIDO Solutions’ Series B capital raise while global impact investment manager BlueOrchard invested another $10 million. Other investors brought the rest of the $10 million to its books.
According to Fido CEO, Alon Eitan, ” I’m proud to share that we’ve raised $20M in Series-B funding from BlueOrchard Finance Ltd and FMO – Dutch entrepreneurial development bank, plus $10M in debt funding from Stanbic Bank Ghana and Growth Investment Partners (GIP). This investment will accelerate our growth across Africa and enhance our financial services for the unbanked.”
Launched in 2015 by Nadav Topolski, Tomer Edry and Nir Zepkowitz Fido Solutions offers loans, savings, insurance, bill payments and smartphone financing via mobile phones to serve a majority of its customers who are unbanked or underbanked.
FMO invested USD 10 million in direct equity (from MASSIF) in FIDO’s Series B capital raise to support FIDO’s loan book growth in Ghana and Uganda and to further expand into new African countries, while maintaining their goal of supporting bottom-of-pyramid (BoP) clients.
With the $30 million Series B funding, Fido aims to bolster its lending capacity from between $20 and $500 to a higher amount and as well launch in additional African nations apart from Ghana and Uganda to serve the bottom of the pyramid more effectively.
FIDO utilizes alternative data and artificial intelligence (AI) to underwrite more than 650,000 customers, granting them instant access to credit without a formal financial track record based on a credit score calculated by FIDO. The Ghanaian firm offers loan products embedded with insurance and the new funding will now help the firm include climate insurance for farmers against climate risk.
In 2021, Fido raised $30 million in a Series A round led by Israel-based private equity fund, Fortissimo Capital with participation from Yard Ventures to introduce savings and payment products, launch a second R&D Centre in Accra, Ghana and expand into Uganda, its second market.
“A heartfelt thanks to our amazing team and loyal customers who made this possible. Together with our investors, we’re driving a brighter financial future for millions.” said Eitan.