Ghana’s digital lender Fido plans to launch new products after raising $30 million series A funding from Fortissimo Capital and Yard Ventures.
After extending credit to thousands of customers over mobile phones since 2015, Ghana-based fintech Fido is now in search of additional growth avenues for its expansion across Africa.
Fido told TechCrunch that it is planning to add savings and payment products to its portfolio later this year, and to enter Uganda, its second market, as it prepares to expand to more regions across the continent. The fintech is also set to open its second research and development center in Ghana’s capital, Accra, which will augment its Israel branch, to help it automate most of its operations to ensure sustainability in the long-term.
The aforementioned plans come against the backdrop of a $30 million equity investment and some undisclosed debt funding that the startup has just raised in a Series A round led by Israel-based private equity fund Fortissimo Capital, with participation from Yard Ventures; a VC fund by Harvard alumni. This brings the total equity investment raised to date to $38 million.
“What we are seeing in the market today is a segment of customers, who are mostly small entrepreneurs, that don’t really have access to traditional banking systems … and we see an opportunity to offer these customers, who are outside banking systems, savings products that are fully-digital and very easy to use,” Fido CEO, Alon Eitan told TechCrunch.
“Customers will be able to deposit from mobile money, cards and even cash, and we receive attractive returns on those savings. Our payments product will be layered on top of existing payment rails, as we want to create interoperability between all the different payment rails that are popping up in different countries today,” said Eitan.Ghana’s fintech Fido raises $30M to roll out new products and expand across Africa View Story