Nigerian credit start-up Migo raises $20mn, eyes expansion to Brazil

Nigerian fintech startup, Migo, has made headlines in the financial world as it recently raised $20 million in a Series B funding round led by Valor Capital Group. The company has set its sights on expansion to Brazil as part of its strategic growth plans. Adia Sowho, the Vice President for Growth at Migo, sat down with CNBC Africa to discuss the company's unique approach to providing credit services and its ambitious plans for the future. Migo operates a platform that enables businesses such as retailers, telecom providers, and banks to offer credit to their customers in various forms, including cash loans and point-of-sale credit options. With Nigeria's challenging credit landscape, Migo saw an opportunity to leverage technology and digital infrastructure to provide much-needed credit access to the millions of Nigerians who are currently underserved by traditional financial institutions. Sowho emphasized that Migo's goal is to augment existing infrastructure by collaborating with partners across different sectors, tailoring their credit services to suit the specific needs of each partner and their customer base. The company's innovative approach has led to significant interest from Nigerian consumers, with Migo already boasting 1 million unique users and aiming to expand their reach further. When discussing Migo's expansion plans, Sowho highlighted the decision to target Brazil as the next market for growth. Drawing parallels between the market conditions in Nigeria and Brazil, Migo believes that their partnership-oriented approach will enable them to scale successfully in a similar market environment. By raising $20 million in funding, Migo plans to hire additional staff, establish new offices, and enhance its operations to drive both existing and new business initiatives. Looking ahead to 2020, the company aims to continue growing its user base and expanding its business size, signaling a promising year ahead for Migo and its ambitious growth trajectory.