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    Nigerian Digital Financial institution Umba secures $15M in Sequence A funding

    Umba, a Nigerian digital banking firm, has secured $15 million in Sequence A funding. The announcement comes roughly two years after the fintech obtained a $2 million seed funding.

    Surprisingly, Umba was capable of persuade a few Nubank executives to wire some funds as a part of this Sequence A transaction.

    Tom Blomfield, the co-founder of Monzo, and former backers Lachy Groom and ACT Ventures are among the many different buyers. Lux Capital, Palm Drive Capital, Banana Capital, and Streamlined Ventures had been among the many new buyers, with Costanoa Ventures main the spherical. To current, the fintech has secured $17.5 million in funding.

    Umba claims to offer a complete alternative of clear and accessible monetary merchandise to those that are underserved by legacy banks throughout Africa, the place simply 43% of the inhabitants has a checking account.

    Free financial institution accounts, interbank transfers, peer-to-peer transactions, and invoice funds are amongst its options.

    These are frequent components of African digital banks, whether or not deposit-only like Kuda, credit-only like FairMoney or Carbon, or each like Fintech Farm.

    Tiernan Kennedy, Umba’s CEO, acknowledged that the startup follows Nubank’s credit-led method, during which it first tackles shoppers’ liquidity issues earlier than upselling them on a variety of banking merchandise.

    Umba prospects can purchase loans along with a no-fee present account, free funds, and invoice funds.

    In keeping with Kennedy, the enterprise offers credit score options based mostly on proprietary information equipped by prospects. The fintech startup makes nearly all of its cash by charging prospects a month-to-month rate of interest of 10%.

    The recent capital will allow the agency to do that out because it plans to launch in new areas the place cellular cash is fashionable, together with Egypt, Ghana, and Kenya.

    Within the following 18 months, Umba will develop its product choices by launching debit playing cards, financial savings accounts, and inventory buying and selling.

    Equally, for therefore a few years, the rise of fintech has upset the institutional banking enterprise. In a market that has excessive competitors already, FinTech, or new creative gamers, are placing a brand new type of competitiveness on banks.

    Truly, banks are already competing with cell phone operators and cash switch and cost corporations. Owing to their revolutionary cellular cash switch, cellular cost choices, and easy financial institution opening, these rivals now have a big market share and Umba is considered one of such.

    It’s price noting that there are many digital banks in Nigeria and Africa as a complete. This fintech believes that now could be the suitable time to ship monetary companies to each market, from the banked to the unbanked, as Africa continues to expertise an incredible rise in cellular utilization and the corresponding increasing younger inhabitants.

    These fintech concepts have piqued the curiosity of buyers all through the years, and it continues to take action as they give the impression of being to develop their operations to different African nations and incorporate new applied sciences into their platforms.

    Umba has been in enterprise for about two years. Since debuting 18 months in the past, the startup has elevated its earnings each three months, with over 1 million installs on Google Play Retailer.

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