Kenyan fintech Paylend raises Sh226 million for expansion
By Moses Omusolo
| Dec 29th 2021 | 2 min read
Local startup Paylend has secured Sh226.4 million from Asian investors to fund its expansion.
The investment will help Paylend grow its operations in Kenya and enter new markets in Tanzania, Zambia and Nigeria as part of its three-year growth plan.
Paylend financier Chymia Consulting HK Limited is an Asian company that provides blockchain applications, consultancy services and training across the globe.
Paylend Chief Executive Eliutherius Juma said the capital injection could not have come at a better time, with industry data putting the value of the credit gap in Sub-Saharan Africa at Sh10.2 trillion ($90 billion).
This requires an increase of over 350 per cent to close the gap.
This is as the formal banking sector in Sub-Saharan Africa only supports around 20 per cent of Africa’s bankable population, meaning the majority of the people are excluded from access to finance and wealth creation.
“For a long time, micro, small and medium enterprises (MSMEs) have experienced stunted growth due to lack of efficient business tools or lack of funds. With Paylend, we are able to turn this around by helping these businesses access affordable credit quicker, allowing them to have liquidity thus ensuring business continuity,” said Juma.
Focused on providing access to finance and digitising local MSMEs, Paylend is an Adanian Labs startup — a pan African smart technologies venture studio aimed at building, nurturing and scaleing300 impact driven technology startups across Africa.
Adanian Labs Chief Technology Officer Bendon Murgor expressed confidence that the investment will see Paylend transform MSMEs in Kenya and beyond through digital skills and financial inclusion.
Next Chymia Consulting HK Chief Executive Kenji Sasaki said the pact with Paylend epitomises the potential that the informal sector in Africa has in solving key society issues.
“We believe in the power of technology in transforming communities, and Paylend’s model is doing that at a micro level, which is where a lot of work is needed if we are to drive digitisation,” Sasaki noted.
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