Share
Lendable raises $6.5mn in Series A funding round
Start up and frontier markets fundraiser Lendable inc. has raised USD$ 6.5 million (KES671 million) in a Series A round of investment to scale operations, drive market expansion, and roll out new products in frontier markets. The company employs technology-enabled deal services to help alternative lenders access structured finance to scale up their operations. CNBC Africa's Charles Gitonga caught up with Lendable CEO and Co- founder Daniel Goldfarb for a look at the group's activities.
Thu, 19 Oct 2017 07:52:29 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Lendable secures $6.5 million in Series A funding to ramp up operations and introduce new financial products tailored to diverse market segments
- The company aims to boost deal flow and scale by hiring more talent, enhancing their technological infrastructure, and expanding into new geographies
- Lendable's commitment to providing transparent and data-driven investment solutions is set to attract more investors and drive economic empowerment in frontier markets
Lendable, a startup and frontier markets fundraiser, has successfully raised $6.5 million (KES671 million) in a Series A round of investment. The company, which has been operational in Kenya for almost two years now, aims to address the issue of limited access to credit by connecting alternative lenders in Sub-Saharan Africa with institutional investors in America. Through their innovative Maestro platform, Lendable evaluates the risk of investments and ensures they invest alongside other investors, thereby instilling confidence in those looking to venture into previously untapped markets. CEO and Co-founder Daniel Goldfarb recently sat down with CNBC Africa's Charles Gitonga to shed light on the company's plans for future growth and expansion. Goldfarb mentioned that the main objective now is to accelerate the scale-up process and attract additional funding to fuel this expansion. The company's strategy involves launching new products, growing its team, and expanding its geographical reach. With the funding secured, Lendable is gearing up to increase its deal flow, aiming to close around 10 deals every quarter starting next year. The focus will be on enhancing capacity by hiring more talent and improving their technological infrastructure. One notable aspect of Lendable's approach is their commitment to offering a range of financial products tailored to different segments of alternative lenders. They have already introduced an off-balance sheet product, which has proven beneficial for certain partners, and are now looking to introduce new offerings to cater to a broader range of needs in the market. Goldfarb emphasized that understanding the unique risk profiles of various loans is crucial in providing efficient and transparent financial solutions to borrowers. He highlighted that while the industry is ripe for growth, the challenge lies in the availability of sufficient capital to support companies in scaling their operations. Lendable has already made significant strides in supporting alternative lenders in the East African market, with success stories of enabling partners to double their loan books and expand into new regions. Despite the hesitance of some American investors to venture into African markets due to a lack of familiarity, Goldfarb remains optimistic about bridging this gap by showcasing the lucrative opportunities available in Sub-Saharan Africa. He pointed out that with the abundance of idle capital in the US and the substantial SME funding gap in Africa, there is enormous potential for mutually beneficial investments. By demonstrating a data-driven and responsible investment approach, Lendable aims to attract more investors and facilitate the flow of capital into underserved markets. As the company forges ahead with its expansion plans, it is poised to play a significant role in facilitating access to credit in frontier markets and driving economic empowerment in the region.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.