ImaliPay deploys technology to enhance Financial Health of African Gig Workers

The African gig economy has continued to grow at 33% CAGR with 8 million gig workers today and it is the capability of reaching more than 50 million in 2030 according to the Mastercard Foundation. The gig is made up largely by the mobility or courier, e-ride hailing companies, and freelancers from Kenya, Nigeria, and South Africa.

The gig economy is mainly based on makeshift, friendly, or freelance work that involves the gig workers and clients connecting through a digital platform. Gig workers work independently and go into formal agreements with companies that demand to offer their services. The gig economy presented huge benefits to gig workers and businesses by ensuring jobs are adaptable to the requirements of the present realities for a flexible lifestyle.

On the other hand, the gig economy also has its challenges that arise from the relationships between workers and their clients. Also, an average gig worker does not have a consistent income.

As regards this development, Tatenda Furusa and Sanmi Akinmusire launched a fintech startup for the gig economy, ImaliPay in 2020 to cater to the state of the African gig economy.

Tatenda Furusa, a Co-founder explained he met Sanmi at Cellulant a top Pan African digital payments company where they collaborated to create a platform to provide a solution to the fintech aspect of the African continent.

“This was increasingly triggered after I shared some insights around my day-to-day experience with Uber and Bolt drivers in Kenya and how they were neglected around working capital and also lacking a safety net as independent contractors.”, Tateenda added.

Imalipay’s overview

The startup utilizes big data and artificial intelligence (AI) to provide specified financial health products that enhance the inclusion of platforms around the gig economy and empowerment for blue-collar gig workers around the continent.

“We are building an ecosystem where African gig workers may create a safety net around their work through easy savings and transparent in-kind financing that drives their productivity and economic empowerment.”

For financial services, ImaliPay provides an in-kind loan for tools of trade or a cash advance to enhance their development. Users can create their credit scores as they pay back on time to save regularly.

According to the company’s website, the platform is currently being used in three countries which are, Nigeria, Kenya, and South Africa as they plan of expanding to other regions. Also, the fintech startup has 5 Gig Platform Partners across the three countries with 350,000 addressable users.

The fintech startup offers its users the following business plan:

Basic – plug and play solution of digital financial services and a USSD or Whatsapp channel

Advanced – a combination of a financial services API integration and digital channel

Deluxe – financial services API integration and other infrastructure needs

In March, ImaliPay raised an undisclosed round of pre-seed funding aiming at becoming Africa’s one-stop shop for gig workers’ financial needs.

How the fintech startup provides its flexible financial services

According to the platform’s website, ImaliPay outsources financial well-being for gig workers while improving retention and productivity on the platform.

Tatenda explains that ImaliPay leverages AI, therefore, recommending the financial services that best fit the needs of users and gig work. The platform also provides a cash flow scoring model that makes its users understand their income.

“This means we are nimble in addressing the needs of the gig workers across the various verticals compared to existing wallets or banks.”, he added.

According to Tatenda, the startup has its focus on the informal sector and self-employed because existing financial institutions are designed for formal, salaried, or payslip-type individuals.

“This traditionally has given banks security and comfort towards offering loans and other banking services. The informal sector is 80% of Africa’s population and thus is generally neglected and underbanked. We are looking to solve that.”

“We’re very excited by what is in front of us and we’re looking forward to empowering and improving the financial health of Africa’s hardest working segment of the population.”, Tatenda concluded