Finclusion Group, a financial technology company offering credit-driven solutions across Africa, has raised $20 million in a mix of debt and equity financing. This funding aims to support the company’s transition into a neobank and facilitate its expansion into new markets, including Mozambique and Uganda.
The round attracted investments from several prominent individuals, including the co-founder of Andela and Flutterwave, Iyin Aboyeji, who invested via Future Africa, alongside LendInvest’s Christian Faes and ComplyAdvantage’s Charlie Delingpole. Other participants included Amandine Lobelle, Sudeep Ramnani, and Klemens Hallmann. Additionally, the debt portion of the funding was sourced through local currency facilities in Eswatini and South Africa.
Transforming into a Neobank
Founded in 2018, Finclusion leverages AI to deliver financial services through credit-centric products such as payroll loans and wage streaming. To date, the fintech has disbursed over $300 million in loans to more than 240,000 customers. However, only 28,000 of these have active loans, highlighting the company’s need to retain customers beyond one-off transactions.
This shift toward a neobank strategy allows Finclusion to diversify its offerings. Alongside credit products, the company has introduced insurance services and plans to roll out savings products, payment cards, and buy now, pay later (BNPL) options through a merchant network.
“Our approach has always been to lead with credit, as it’s a critical need for many African customers. But transitioning into a neobank allows us to offer a broader range of financial services,” said Timothy Nuy, Finclusion’s CEO.
Expanding Across Africa
Currently operating in South Africa, Eswatini, Kenya, Namibia, and Tanzania, Finclusion aims to expand its footprint while addressing financial inclusion in underserved markets. The company operates administrative hubs in Kenya and South Africa and plans to establish a new one in West Africa to oversee its multi-country operations.
According to Nuy, rolling out digital banking solutions across regions with shared operational similarities allows for efficient scaling. “With operational experience and a robust tech stack, we can expand across multiple geographies simultaneously, making us uniquely positioned for pan-African growth,” he said.
Building a Credit-Led Ecosystem
Finclusion has forged partnerships with employers to offer financial services to their employees, targeting over 1.2 million individuals within these networks. This strategy aligns with its long-term goal of creating a scalable, pan-African neobank.
In the last six months, Finclusion has secured over $32 million in debt funding from emerging market lenders and local facilities. This financing underscores the fintech’s ability to leverage institutional support while building credit histories for its customers.By expanding its product suite and entering new markets, Finclusion aims to set itself apart in Africa’s competitive digital banking space, with ambitions to lead the continent’s neobank revolution.
