Mamamoni, a Nigerian fintech social enterprise, has secured a €250,000 funding grant from the Challenge For Youth Employment (CFYE). The CFYE is financially supported by the Netherlands Ministry of Foreign Affairs and boasts collaboration with numerous organisations, including SheLeads Africa, ReelFruit, Utiva, Stutern, and Co-Creation Hub in Nigeria. It holds over 30 businesses in its African portfolio.
This funding, which will be allocated over the span of two years, is contingent upon Mamamoni’s ability to achieve certain milestones. The investment is particularly aimed towards expanding its network of female agents, a task in which the VFD Microfinance Bank will provide assistance.
Established in 2014 by Nkem Okocha, Mamamoni seeks to empower low-income women in Nigeria by providing them the necessary skills to achieve financial independence. This popularly recognized fintech enterprise is poised to considerably scale up its operations and outreach through the considerable endowment it has just received.
Initially, Mamamoni primarily supplied microloans financed by individual donors and investment clubs to support these women’s businesses. However, due to the overwhelming demand for loans, the enterprise faced difficulties in sourcing the necessary funds. This led to collaborations with financial partners for loan provision.
In a significant development in 2022, Mamamoni shifted to an agency banking model. Currently, the initiative boasts a network of 500 female agents spread across ten states who process over ₦3 billion monthly.
Mamamoni’s female-centric approach stems from its organizational mission of empowering women. Additionally, it addresses cultural and religious barriers in some communities where women face difficulties in conducting financial transactions with male agents.
The agency banking model has significantly contributed to Nigeria’s financial inclusion efforts. It led to nearly 2 million agents being enlisted nationwide by various startups and banks.
However, one challenge within this sector is the high cost associated with providing Point of Sale (PoS) terminals. As a workaround, numerous financial institutions heavily subsidize the acquisition costs or provide flexible repayment terms.
Given that Mamamoni’s target market may potentially struggle to afford the costly terminals, the fintech has implemented a policy to supply these terminals once a caution fee is paid. Although the exact fee remains undisclosed by the founder Okocha, she clarified that not all agents are obligated to pay this fee. This move on Mamamoni’s part essentially eliminates the financial burden for these agents, enabling them to conduct transactions smoothly.
Notably, Mamamoni takes special care in empowering women by providing them with means to earn. As Okocha mentioned, many of their early female agents were given these devices for free to start their income journey.
Despite the high cost of acquiring the PoS terminals proving to be a considerable hurdle to reaching more women, Mamamoni remains steadfast in its mission. The Mamamoni Foundation extends its impact by offering training for low-income women via in-person sessions and the SheSABI app.
In addition to being a source of training, the foundation also serves as a recruitment platform for its agents, who are required to complete the training programs before beginning as mobile banking agents. For a minimal charge of ₦1,000, the foundation provides them with health insurance for specific illnesses through partnerships. However, this insurance can only be accessed via a Mamamoni agent.
Prior to receiving this funding, Mamamoni had secured less than $100,000 from organizations like the Tony Elumelu Foundation and Seedstars. Okocha attributes this to the company’s model as a social enterprise, which may not appeal to most investors.
Okocha described the model as requiring “patient capital”, and high-risk due to the market they serve. While many trust the founder and Mamamoni, concerns persist regarding the repayment capabilities of the women the company works with.
Mamamoni’s initiatives have positively affected over 50,000 women over time. Okocha aims to broaden the fintech enterprise’s reach even further in the upcoming years.
By the end of 2024, Mamamoni plans to extend its agent network to over 2,000 women. Another significant development is the launch of Herpay, a payment app targeting women across various socio-economic classes. Through Herpay, Mamamoni intends to offer lower transaction fees and onboard 500,000 women by the end of 2024.
