Considered an important business and investment centre, South Africa is also a leader in the fintech sector in Africa. By 2021, the country already had five cities (Johannesburg, Cape Town, Pretoria, Gauteng and Stellenbosch) in the " Global Fintech Index City Ranking "Jumo is a fintech that was born in this environment. Jumo is a fintech that was born in this environment. What makes it special? To promote loans and other savings products to its users. Let's find out more about this South African startup that has already raised millions of dollars over the past few years for its expansion into emerging markets.
Financial services accessible to unbanked populations
Jumo is a platform that provides financial services such as loans and savings products from partner banks to individuals and small businesses via mobile phone networks. It targets users who have limited (or no) access to essential financial services, and who live in emerging markets where the population is primarily connected via mobile phones.
Since its launch in 2014, more than nine million people have saved or borrowed on the Jumo platform. Nearly 70 % of them are micro and small business owners, the firm said in a press release. To date, Jumo has initiated more than $1.8 billion in loans on its platform and handles more than 25 million customer interactions per month.
By offering a wide range of services to users in emerging markets through partnerships with other financial institutions, Jumo enables its partners to access and better serve consumers through their respective platforms. It also offers savings options to its customers, including short, medium and long-term products. It also works with underwriters and insurers to create stand-alone insurance products to "protect incomes, families, assets and businesses".
A business model designed to have a major impact
Jumo's business model of working with third parties helps it to diversify its distribution channels, and allows for faster expansion. This is likely to stimulate investor interest in the fintech. To further diversify its offering and have a greater impact on financially excluded populations in emerging markets, Jumo plans to offer more consumer products, as most existing offerings focus on entrepreneurs and businesses.
Through its partnerships, more than 120 million people have access to the platform. The startup's partners include Telenor and Telenor Microfinance BankThe company launched its first commercial product in Asia in 2018, as well as Tigo, Airtel and MTN, with whom it offers short-term loans in Kenya, Zambia and Uganda.
In 2021, the innovative company raised $120 million in a new funding round, bringing its valuation to $400 million. Jumo, which plans to use the funds in part to drive its international expansion, already has offices in Kenya, Uganda, Tanzania, Rwanda, Ghana, Zambia, Pakistan, the UK, Singapore and South Africa.
Obtaining loans is a luxury that many cannot afford and for good reason: traditional banks very often have many conditions and guarantees. This causes many needy citizens to abandon their project or find an alternative. To remedy this, Jumo was created. Since then, it has enabled people to make loans from their mobile phones without any guarantees. The Jumo solution allows many individuals and small businesses to launch their businesses or invest in projects that are important to them.
