Migo formerly known as Mines.io has expanded to Brazil after raising $20 million Series B investment led by Valor Group Capital. This follows a $13 million Series A round in August last year.
Also participating in the funding round are new investors Africinvest and Cathay Innovation as well as existing backers Velocity Capital and The Rise Fund.
Migo, a cloud-based firm that was launched in 2013 in Nigeria; enables companies to offer credit to their customers, growing traditional bank and payment card infrastructure.
Businesses like banks, telecommunications operators and merchants integrate Migo in their apps and Migo underwrites customers to provide them with a digital account and credit line.
The customers can use this credit line to make purchases from a merchant or withdraw cash without the need for point-of-sale hardware or plastic cards.
With Migo underwriting customer loans and credit, it helps to boosts the courage of these businesses to offer loans to unbanked Nigerians who normally won’t have access to these credit lines.
Presently, in the biggest economy in Africa, 60 million people lack access to financial services which also include loans and credit.
As of 2017, Migos has initiated more than 3 million loans to more than 1 million customers in Nigeria and counts Interswitch and MTN as clients.
“The global social inequality challenge is driven by a lack of access to credit. If you look at the middle class in developed countries, it is largely built on access to credit,” Migo founder and CEO Ekechi Nwokah.
“What we are trying to do is to make prosperity available to all by reinventing the way people access and use credit,” he explained.
Migo which has signed on some clients in Brazil is the latest fintech startup to secure funding in Nigeria. It joins OPay and PalmPay that recently raised funds from Chinese investors.
