Oze, an AI-Powered digital lending solutions for financial institutions and SMEs provider, has raised funding Visa and German development finance institution DEG with participation of existing investors including Speedinvest and Africinvest through its Cathay AfricInvest Innovation Fund.
With this funding, Oze plans to scale its proprietary Lending Management System (LMS), a machine-learning credit risk algorithm to banks, microfinance institutions, and fintechs—to offer unsecured, no-collateral digital loans to merchants and small businesses.
“This funding will accelerate our mission to empower small businesses across Africa. By scaling our Lending Management System, we can help more financial institutions unlock the potential of SMEs and drive financial inclusion at an unprecedented scale,” said Meghan McCormick, Oze’s Co-founder and CEO.
Oze, an early Visa Accelerator Program cohort startup, provides banks and lenders with tools to automate digital lending, while MSMEs benefit from easy-to-use business management software to track sales, expenses, and customer information. Oze analyzes this data to deliver actionable recommendations, business education, and access to capital.
Oze works with commercial banks such as Ecobank in Ghana, Nigeria, Guinea, Benin, Rwanda, Madagascar, Zimbabwe, and Lesotho, with plans to expand further across the continent
“Visa is committed to fostering innovation and financial inclusion across Africa, and Oze’s vision aligns perfectly with that mission. Their approach to enabling digital lending for underserved small businesses is transformative, and we are excited to partner with them to drive this change,” said Fabrice Konan, Country Manager Visa Ghana.
DEG’s investment comes through its Up-Scaling Programme, which targets high-impact, innovative business models in developing and emerging markets.
“Oze’s technology has the potential to unlock financial opportunities for millions of small businesses in Africa, creating sustainable development and fostering inclusive growth. We are proud to support their expansion.” said Dr. Tobias Bidlingmaier, Head of Up-Scaling at DEG.
Oze was also recently selected as one of 3 finalists for the Milken Motsepe Prize for Fintech for its innovative approach to expanding access to capital and financial services for small businesses in emerging and frontier markets. Out of more than 5,000 applications and a semi-finalist pitch at the Milken Institute’s annual Middle East & Africa Summit, Oze emerged as one of the top 3 companies still in the running for a $1M prize.
In 2022, Oze raised $3 million in a pre-Series A round led by major venture capital firm Speedinvest. The oversubscribed round included Cathay AfricInvest Innovation Fund, Savannah Fund, and several Angels with experience managing and investing in global fintech.
