OZE, a fintech startup based in Ghana that focuses on scaling small African companies through digitized operations. It has raised $3M in pre-Series A funding.
The new investments come exactly one year after OZE raised $700,000. Speedinvest, a European early-stage venture capital company, led the latest round, with Savannah Capital, Cathay AfricInvest Innovation Fund and other unnamed angels investors.
According to TechCrunch, OZE plans to increase its talent base, acquire new customers, strengthen its presence in Nigeria and Ghana, as well as expand its reach into new African markets with the new funding.
OZE was founded in 2018 and uses users’ data to create credit profiles that allow them to access no-collateral loans at banks. The seed round will be used to expand the company’s team and to promote its iOS app.
While MSMEs account for 38% of sub-Saharan Africa’s GDP, 51% of them lack the finance they need to grow. According to the International Finance Corporation, the MSME OZE aims to close this gap by using its proprietary credit risk algorithm and business app to allow banks to seamlessly offer MSMEs no-collateral loans.
The fintech startup, which is based in Ghana, currently empowers over 125,000 entrepreneurs in Nigeria and Ghana. OZE’s monthly active users increased by 1,200% in 2021. According to OZE, the company also stated that the number loans granted through the platform increased by 200% between Q3 and Q4 2021. OZE reports that 97% of the business owners who use the platform have businesses that are profitable or growing.
Businesses in Ghana can accept payment via mobile money, card or bank transfer to Nigeria. OZE can be used as a payment option instead of cash or other platforms. It will also have lower credit limits and interest rates.