Fido, a Ghanaian digital financial services platform, has raised $30 million in debt and equity funding.
The equity part ($20 million) of the funding came from BlueOrchard-managed InsuResilience Investment Fund Private Equity II (IIF II) and FMO, the Dutch Entrepreneurial Development Bank.
Meanwhile, the debt funding ($10 million) was from Stanbic Bank Ghana and Global Infrastructure Partners (GIP). This funding will enable us to further our mission of making financial services accessible to the unbanked by expanding our reach into new markets and enhancing our product offerings.
Founded in 2015 by Nadav Topolski, Tomer Edry and Nir Zepkowitz, Fido offers instant credit via a digital app that uses internally developed artificial intelligence (AI) learning models to create proprietary credit scores. The scores are then used to provide individuals and businesses with appropriate levels of credit that would otherwise not be available to them from banks or traditional MSME lenders.
It was initially launched to offer loans over mobile phones, Fido has over the years introduced other products, including savings, bill payments and smartphone financing, to grow its revenue streams.
According to the World Bank’s research from 2020, when considering poverty among the flood–exposed population, the risks are larger in Sub-Saharan Africa. At least 71 million people there are estimated to live in both extreme poverty (using the USD 1.9 per day definition) and significant flood risk, making them particularly vulnerable to prolonged adverse impact on livelihoods and well-being.
“Receiving this investment from FMO and the BlueOrchard-managed climate insurance private equity fund is a testament to the strength of our business, the exceptional capability of our team, and the tremendous market opportunity that lies ahead. With the support of FMO and the fund, who bring unparalleled knowledge of the market and our industry, we are well-positioned to accelerate our growth trajectory, deepen our market penetration across Africa, and solidify our position as an industry leader,” CEO of Fido, Alon Eitan.
“Fido is at the forefront of driving financial inclusion through their artificial intelligence and proprietary credit scoring platform. Their fully digital capabilities allow them to serve a part of the market that has historically been neglected and remains highly underpenetrated. The Fido team has extensive experience in technology and scaling start-ups and is strongly aligned with our mission. We are excited to partner with them to help grow their business,” Richard Hardy, Private Equity Investment Director Africa at BlueOrchard.
