JUMO, a South African fintech startup that helps entrepreneurs in developing countries gain access to loans, has raised $120 million at a $400 million valuation. This is coming a year after the startup raised $55 million. In total, JUMO has raised more than $200 million in equity and debt rounds.
The round was led by Fidelity Management & Research Company, also saw the participation from fintech giant Visa and Kingsway Capital.
Founder by Andrew Watkins-Ball in 2015, JUMO offers savings and credit products to entrepreneurs in emerging markets, as well as financial services infrastructure to partners such as eMoney operators, mobile fintech platforms and banks. The platform has two foundational capabilities:
In just over five years of operation, JUMO has enabled the disbursement of more than US$3.5 billion in loans and reached over 18 million customers and small businesses. The fintech is present in seven markets including Ghana, Tanzania, Kenya, Uganda, Zambia, Côte d’Ivoire and Pakistan.
“It’s exciting to be part of the wave of US capital being invested in payments and fintech on the continent – there are some great businesses being built and we are proud to play a role supporting capital providers to reach customers with great products,” said Watkins-Ball in a statement.
Asides from the expansion into Nigeria and Cameroon, JUMO says it will use the investment to improve and increase the number of financial products it offers to small and medium businesses. It also plans to provide longer-term lending options for merchants and bigger businesses.
“JUMO’s lending platform is highly attractive in its ability to scale across markets and drive financial inclusion by creating access to credit for consumers and small businesses,” said Melissa McSherry, the global head of Risk and Identity Services at Visa in a statement.
“We are excited about our investment in JUMO and are looking forward to accelerating adoption of JUMO’s platform across markets and delivering on Visa’s mission of helping individuals, businesses, and economies to thrive.”