Branch Raises Shs 500 Mn To Boost Local Lending in Kenya
As part of its plans to boost its portfolio in Kenya, Branch has raised Shs 500 mn to increase its local lending operations, it brings to a total of Sh 1.5 bn of funds raised locally via commercial paper issuances arranged by the Centum-owned advisory firm, Barium Capital.
The company announced the issuance of a fourth commercial note of Ksh 500 million after repaying the third note of a similar amount.
This new fund supplements Shs 17 bn raised earlier this year from top international investors, including the World Bank Group’s International Finance Corporation, Visa, Foundation Capital, Trinity Ventures and Andreessen Horowitz.
Kenya has remained attractive for digital lending services with the emergence of different players wanting a share of the sector. Branch said that it will use the latest investment to expand its services in Kenya as it tackles rivals such as Tala and Operas Okash.
“With the high rate of smartphone adoption in emerging markets, Branch is uniquely positioned to leverage its advanced use of data science to underwrite and provide credit and other financial services to more customers than ever before,” Dan Karuga, East Africa General Manager for Branch noted.
Teresia Muthoni, Barium Capital’s Managing Director on her part stated, “our investor base continues to be keen to be part of Branch’s growth story and we’re proud to have secured them an opportunity to do so.”
The firm, which has operations in Nairobi, San Francisco, Mumbai, Mexico City, and Lagos focuses on easing financial to people who are left out of the banking industry by the use of data science.
The micro-lending firm has raised more than USD 100 mn in investment from leading firms including Andreessen Horowitz, Trinity Ventures, IFC, Victory Park Capital, Barium Capital, 8.vc, Khosla Ventures, and CreditEase.
Featured Image Courtesy: Reuters.com
