A United Kingdom-based fintech startup specializing in creating digital banks for emerging markets has announced securing $7.4 million in seed funding. The funds will support the company’s plans to establish neobanks in eight countries within the next two years. The round was co-led by Flyer One Ventures and Solid, with additional participation from TA Ventures, Jiji, u.ventures, and AVentures Capital.Digital banks have gained significant traction globally, providing alternative financial services in a space traditionally dominated by legacy institutions. This startup aims to replicate the success of neobanks in regions with high demand for accessible financial solutions.
Having launched its first market presence in Azerbaijan under the name “Leobank” in November 2021, the fintech focuses on offering credit to customers with limited or no credit history. Using a partnership model, the company collaborates with local banks that provide licenses and capital while it manages the app, credit systems, and business operations.
“Typically, we operate as a 50-50 partnership with local banks. We manage the digital banking experience and decision-making process, while our partners contribute local expertise and financial infrastructure,” said a company representative.
In just three months, the startup issued over 100,000 cards in Azerbaijan and plans to reach one million by the end of the year. The company’s neobank approach centers on issuing a hybrid card that serves as both a debit and credit card, along with offering savings accounts, deposits, and transfer capabilities.
Expansion to Africa and Asia
With plans to enter eight emerging markets, Nigeria has been identified as the next target. The rollout in Nigeria is expected in early 2022, focusing on offering credit products to a population with growing demand for affordable financial solutions.
Unlike its operations in Azerbaijan, the company has initially obtained a cooperative license in Nigeria, allowing it to build its customer base. Once it reaches a milestone of 200,000 users, it plans to partner with a local bank to scale further.“Our credit offering focuses on creating a mass-market credit card,” explained the company’s spokesperson. “While traditional banks in Nigeria limit credit cards to the upper-middle class, and alternative lenders offer high-interest rates, we aim to bridge this gap with fairer, more accessible options.”The company also plans to leverage advanced data science techniques to analyze creditworthiness, a critical challenge in Nigeria, which lacks an advanced credit bureau system.
Investors and Growth Plans
One of the lead investors, Vladimir Mnogoletniy, a co-founder of Jiji, will join the company’s board. His insights into operating large-scale digital platforms in emerging markets are expected to be instrumental in the fintech’s expansion.
In addition to expanding geographically, the company plans to invest heavily in marketing, hiring engineers, and enhancing its data science capabilities to support its growth trajectory.
With its innovative credit-led approach, the startup aims to redefine financial access in underserved markets by offering scalable, inclusive, and technology-driven solutions.
