SC Ventures, the innovation and fintech investment arm of Standard Chartered, has entered into a series of shareholder and technology collaboration agreements with Yabx Technologies, a subsidiary of the Tech Mahindra group based in the Netherlands. This partnership formalizes their joint investment in Furaha, a purpose-driven lending platform focused on enhancing financial accessibility across sub-Saharan Africa.
As part of this collaboration, SC Ventures has committed $7 million, while Yabx BV has contributed through technology transfer, resulting in a total combined investment of $10 million in Furaha. Incubated by SC Ventures and co-founded by Yustus Aribariho and Ian Fernandes, Furaha aims to revolutionize access to finance, with its initial focus on education financing.
Furaha is headquartered in the Dubai International Financial Centre (DIFC) in the UAE and is set to expand its services to local markets in Africa, beginning with Uganda as its inaugural market.
Alex Manson, CEO of SC Ventures, expressed enthusiasm about the partnership, stating;
We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access. This collaboration will enhance purpose-driven financing in Africa and supports our mission to transform the banking landscape.
Rajat Dayal, CEO of Yabx, highlighted the significance of this partnership, noting;
This collaboration with SC Ventures is a pivotal moment for Yabx. It marks our entry into the education financing sector. The long-term impact of a partnership like this is substantial, and we’re excited to work with Furaha to positively influence educational outcomes in Uganda and other African nations in the months ahead.
Africa boasts the youngest population globally, with over 600 million children under the age of 18. An education financing platform like Furaha has the potential to significantly benefit families across the continent. Furaha utilizes Yabx’s agile, future-ready platform, which incorporates AI-driven alternative lending capabilities, alongside SC Ventures’ extensive expertise in banking and risk management. This combination aims to lower the costs associated with delivering purpose-driven lending products and broaden financial inclusion for underserved communities in Africa.
One of the most significant financial burdens families face is the cost of quality education for their children. Many parents struggle with liquidity and lack access to short-term borrowing options, such as credit cards or affordable digital loans, making it challenging to pay school fees on time. Delayed or unpaid fees can lead to children being unable to continue or complete their education, adversely affecting their future prospects and, by extension, the development of their communities and countries. This issue is particularly pressing for families with monthly incomes below $500.
Furaha addresses this critical need by creating a comprehensive ecosystem for credit scoring and enabling commercial banks to provide affordable credit for education financing. The platform has already begun offering loan products in Uganda in collaboration with partners such as Opportunity Bank, SchPay, and MTN MoMo, with plans to expand its services to additional African countries.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, emphasized the transformative potential of purpose-driven financing, stating;
The power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity, particularly in regions like Africa. This strategic partnership aims to make financial solutions more inclusive and impactful. It’s an exciting beginning, and we look forward to collaborating with SC Ventures on many initiatives that redefine financial empowerment and drive global innovation.
