To expand like octopus tentacles in Asian and African markets, the firm has decided to open its first office in Singapore which will be run by CEO Andrew Watkins-Ball.
How does Jumo became the apple of investor’s eyes ?
Jumo is a platform that provides financial services such as loans and saving products from partner banks to individuals and small business via mobile phone networks. It targets people who have limited access to essential financial services and who live in emerging market where population is going online for the first time via mobile.
So the very two criteria of their target is met by Africa as well as Asia i.e limited access to financial services and new to the internet.
Also from its inception in 2014 more than nine million people have saved or borrowed on Jumo Platform. To date it has originated over USD $700 million loans on its platform and manages over 25 million customer interactions a month. It has almost 120 million users and has number of offices in different countries of Africa.
What does it show about African fintech space?
Looking at the huge success in fund raising by Jumo, picture is quiet clear about the optimistic attitude of the world towards Africa’s potential in fintech space.
According to Eco Bank, more than 57% of all mobile money accounts globally can be found in sub-Saharan Africa with African fintech market set to grow from $ 200 mn currently to $ 3 bn by 2020. South Africa alone is set to see an increase in banking revenue of $ 4 bn over the next 5 years.These statistics definitely brings the focus of the investors towards the fintech markets of emerging markets like Africa.
Apart from Jumo, the other successful venture by African entrepreneurs are M-pesa, Kenya’s first mobile wallet and Flutterwave, a Nigerian Startup created to unify Africa’s fragments systems through a single API.
Also unlike the West, the fintech companies over here are trying to work with the already existing financial services who aren’t interested in providing services to the unbanked. This way it is a win-win situation for both the parties. With the modernization, the new opportunities for the fintech startups are emerging at the rate of knots.
Fintech is the future and Africa is definitely involved in building a bright one.