Nigeria's FairMoney raises $42m

Nigeria's FairMoney raises $42m

FairMoney, a Nigerian app-based bank that uses alternative smartphone data to underwrite microcredit, has raised $42 million in a Series B funding round led by Tiger Global Management.

Launched in 2017, FairMoney began life by applying machine learning techniques to smartphone data to assess credit worthiness.

In 2020, the firm lent $93 million to over 1.3 million users who made more than 6.5 million loan applications, according to TechCrunch.

FairMoney has also secured a microfinance bank license, enabling it to launch a current account, with a debit card in the pipeline.

Meanwhile the startup has expanded into India, where it has processed more than half a million loan applications.

With the new funding in place, CEO Laurin Hainy tells TechCrunch that FairMoney plans to add new products, including savings, stock trading and crypto.

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