OneFi a Nigerian startup has obtained a $5 million from Lendable, a Kenyan based firm. Proceeds of the loan will be used to deploy more loans through its consumer finance platform Paylater.
Paylater will also introduce several new products as it seeks to transform into a digital bank. Chijioke Dozie, OneFi CEO disclosed this in a press release.
“Securing this investment from Lendable represents the first internationally-backed commercial debt transaction for us, marking an important stage of our company’s development as we look to serve the “next billion”. As we transition into a full-service digital bank, this financing will allow us to execute on a number of new products.
Dozie also hinted at plans by the company to transition into a full-service digital bank.
“As we transition into a full service digital bank, this financing will allow us to execute on a number of new products. This includes our partnership with Visa, whereby we’ll be providing credit via QR codes at supermarkets, clinics and on public transport in H1 2019.”
OneFi was last year assigned a BB credit rating from Global Credit rating company.
How Lendable benefits
Daniel Goldfarb, Lendable CEO is of the opinion, the loan gives the firm a chance to get a foothold into the Nigerian market,
“We are incredibly excited to launch this partnership with OneFi, a market leader, as we build our presence in Nigeria. At Lendable, we build financial products to enable lending companies to scale, and we are proud to support OneFi’s mission of providing credit to the underbanked consumer and SME segments in Nigeria. .”
Lendable has provided credit facilities to several SME credit providers. The firm is backed by several institutional investors including Omidyar Network and the FMO and has worked with several credit providers across Kenya, Nigeria, Ghana, and Uganda.
Paylater is a digital financial services platform that specializes in consumer lending. Headquartered in Lagos, Pay later has operations in Ghana, South Africa, United Kingdom and Portugal.