Fido, a Ghana-based fintech, has provided credit to thousands of people via mobile phones since 2015, and the company is now searching for new methods to expand throughout Africa.
Fido has stated that it will expand its portfolio later this year to include savings and payment alternatives, as well as expand into Uganda, its second country, as part of its plan to expand across Africa.
In addition, the fintech plans to open a second research and development center in Accra, Ghana’s capital, to complement its Israel office and allow it to automate many of its procedures in order to ensure long-term viability.
The startup’s plans follow a $30 million equity investment and undisclosed loan funding from Israel-based private equity firm Fortissimo Capital, with participation from Harvard alumni-led venture capital firm Yard Ventures, in a Series A round led by Israel-based private equity firm Fortissimo Capital. The entire amount of equity raised now stands at $38 million.
Fido, founded by Nadav Topolski, Tomer Edry, and Nir Zepkowitz, offers mobile loans of up to $250 to consumers and small businesses. The loans can be returned in a single or many installments over the course of six months.
According to Eitan, users can quickly create a Fido account because digital registration takes only about 10 minutes.
Customers must first register by uploading headshots and copies of their identification cards, which are then analyzed by Fido’s image recognition system and compared to existing databases. According to Eitan, this multistep verification eliminates scams.
He said, “The fintech employs credit-scoring algorithms to determine how much it can lend to borrowers.”
According to Eitan, the fintech has given 350,000 Ghanaian customers over $1.5 million in loans. This figure is projected to climb as the company expands into other African markets, starting with Uganda.
Fido is supported by a team of 65 personnel, including digital debt collectors who, according to Eitan, follow up on delayed payments in an ethical manner.