Nigerian startup, Piggybank.ng and Kenyan Startup, Olivine Technology have been selected as recipients of $50,000 each in the Village Capital FinTech Africa 2017
These financial inclusion-focused startups were selected from seven startups at the end of a three-month investment readiness program organized in partnership with The MasterCard Foundation and The DOEN Foundation, with platform support from VC4A (Venture Capital for Africa).
The program was launched in January to develop the next generation of financial technology entrepreneurs in sub-Saharan Africa. Each of the seven startups that participated in the full program (selected from over 200 applicants) is focused on improving financial inclusion and livelihoods for low-income populations. In a unique process called “peer-selected investment”, participating entrepreneurs evaluated each other across nine indicators of investment readiness and directed investment capital to the top two, peer-selected companies.
“We have seen growing financial access in Africa over the last several years, but growing access does not necessarily mean growing financial inclusion,” said Village Capital CEO Ross Baird. “There is a real lack of savings, credit, and investment solutions that work for women, youth, farmers, small businesses, and other underserved communities. After witnessing the progress of the FinTech Africa 2017 cohort companies over the past several months, we’re even more excited about their potential to expand financial inclusion in the communities they serve.”
Fintech Africa 2017 is Village Capital’s seventh program in sub-Saharan Africa since 2012 and its second focused on financial technology. The program comprised three workshops, in Accra, Ghana; Nairobi, Kenya; and Lagos, Nigeria.
“Village Capital and its partners are committed to helping build a strong entrepreneurial community and ecosystem on the continent. Since running our first program in Africa, Village Capital has seen significant growth, both in interest levels and sophistication, of businesses applying for our programs,” said Lia Mayka, Village Capital Regional Manager in sub-Saharan Africa. “We are proud of our work with the FinTech Africa 2017 cohort, and look forward to seeing these entrepreneurs continue to do incredible work.”
Village Capital programs put entrepreneurs, investors, policymakers, and stakeholders side-by-side so they can solve problems together, and build and contribute to ecosystems that support local entrepreneurs over the longer-term. The participating companies received training on investment readiness through a focus on human capital, customer development, strategic partnerships, and investor engagement. The program anchored around one-on-one time with mentors, industry experts, investors, top local business leaders, and potential customers.
“We have been proud to work with Village Capital to identify and support the next generation of FinTech entrepreneurs in sub-Saharan Africa,” said Youssouf Sy, MasterCard Foundation. “These entrepreneurs are innovating to increase financial inclusion and improve livelihoods for low-income populations, which is core to our mission and vitally important for the communities the entrepreneurs are serving.”
The list of startup firms that participated in the full program:
- IroFit has developed a mobile card reader that allows small businesses to accept card payments anywhere they operate, even in areas with poor internet connections;
- LipaMobile has developed mPocket, a cashless transaction system used in schools by students to purchase goods using smart cards;
- MaTontine digitizes the traditional peer-to-peer savings system in Africa, in order to offer financial services like small loans;
- Olivinetech has created ASiM, a sales (POS) and stock management solution, that networks multiple sites seamlessly, such as an HQ with its warehouses, outlets, field sales/service agents, and customers;
- Piggybank.ng is a FinTech service that works directly with financial institutions to enable debit card holders in Nigeria to save small sums of money frequently through automation of the saving process;
- Student Finance Africa is using predictive analytics and credit assessment tools to assist young people and their families to obtain financial support for education when they need it and to pay it back when they can; and
- TalentBase is a mobile-first payroll software for SMEs across Africa.
Since 2009, Village Capital has supported early-stage entrepreneurs developing critical agriculture, education, energy, financial services and health solutions for underserved populations worldwide. Its programs in Africa have supported entrepreneurs with mentorship, access to investor and partner networks and support through its award-winning curriculum. To date, Village Capital has invested more than US$300,000 in 11 companies in Africa, with those companies going on to secure more than US$5.5M in follow-on funding, excluding grants and awards.
