Uganda’s Zofi Cash raises $1m pre-seed funding to scale its Salary advance operations

Uganda’s Zofi Cash announced that it has raised $1m pre-seed funding from Advancly.

Founded in 2020 by Paul Kirungi (CEO) and Gordon Turibamwe (CTO), Zofi Cash is a digital financial platform taking care of employees’ financial emergencies before payday by providing Instant Salary Advances. The startup offers salary advances at a very low interest rate based on the number of days you hold your loan before your payday. The interest rates vary according to the number of days advanced to a client before they are paid.

Paul Kirungi said Zofi Cash was born out of his own experience and it was set up to bridge the gap between paydays as emergencies don’t and can’t wait for payday to arrive. Zofi Cash’s mission is to challenge the 30-pay-day status quo which he believes is “outdated and doesn’t meet the current times we are living in today.”

In the last one year, Zofi Cash says that it has done over $300,000 in transactions and it has helped over 3,000 salary earners even though it has about 20,000 on its wait list.

Through this financing, exclusively in the form of debt, the startup aims to extend its reach to a greater number of individuals.