Finclusion Group Raises $20M in Funding to Build out African Neobank

Finclusion Group, the African-focused FinTech platform crafting neobank offerings for its users, has secured $20 million in funding from investors in its latest capital raise, the company announced Tuesday (Jan. 18).

The company, based in Mauritius, an island off the African coast, said it will use the cash to expand into Mozambique and Uganda and grow its operations in Eswatini, Kenya, South Africa and Tanzania. In addition, the new capital will be earmarked for product expansion across the firm’s wage streaming and buy now, pay later (BNPL) offerings.

This latest Infusion of capital comes as BNPL products that allow consumers to pay their bill in interest-free installments, are becoming more attractive to consumers in Africa.

Learn more: BNPL Catches on With African Shoppers

The service is gaining traction in many countries as digitally savvy and highly unbanked populations look to take advantage of the innovative payment solution.

CEO Timothy Nuy said the latest round of funding will enable the FinTech to create financial products that are accessible to residents of among the most remote locations and in the biggest cities across the African continent.

“We are constantly working to add value to our rapidly growing customer base and this funding will only help us to do even more,” Nuy said in a statement. “Partnering with so many respected investors and reputable funds takes us even closer to being at the forefront of financial service technology in Africa.”

The latest infusion of capital follows a $20 million funding last fall round from Lendable, the London-based venture capital company that invests in FinTechs.

Finclusion said the company has seen an increase in originations of 140% over the last 18 months. It lent more than $30 million in 2021 and had revenues in excess of $10 million. The firm said it expects to double originations and revenues this year.