Fido Secures $30 Million to Expand AI Lending Services Across Africa

Ghanaian fintech Fido has raised $30 million in debt and equity to expand its AI-powered digital lending services across Africa. The funding includes a $20 million Series B round and $10 million in debt funding. Fido aims to enhance accessibility for unbanked individuals and expand product offerings, having previously raised $30 million in 2022, totaling $68 million to date.

Fido, a Ghanaian fintech, has successfully raised $30 million in a combination of debt and equity, aiming to expand its AI-driven digital lending services throughout Africa. This fundraising effort includes a $20 million Series B round led by BlueOrchard Finance from Switzerland and the Dutch development bank FMO, alongside $10 million in debt funding from Stanbic Bank Ghana and Growth Investment Partners.

This new funding matches the previous $30 million raised during Fido’s Series A funding round in 2022, which was also significant, marking the total capital raised by the fintech to $68 million. Established in 2014, Fido offers a mobile application that grants instant loans to both consumers and businesses, currently operating in Ghana and Uganda.

The firm’s lending strategy is heavily focused on inclusivity, utilizing the Fido Score—an AI-based model designed for credit risk assessment and fraud detection across the loan lifecycle. To date, Fido has distributed over $500 million in credit to more than one million customers, in addition to providing savings accounts, mobile phone financing, and bill payment services.

In a LinkedIn announcement regarding their recent funding triumph, Fido articulated its intentions to utilize these resources to enhance access to financial services for the unbanked population. The company aims to expand its market reach and broaden its product offerings, stating, “With this investment, we’re ready to bring our innovative financial solutions, including small business loans, savings, and personalized insurance, to even more individuals and small businesses across Africa.”

In summary, Fido’s successful $30 million fundraising effort represents a significant step towards expanding its AI-based lending services throughout Africa. The funds, raised through a Series B round and additional debt financing, will enable the fintech to enhance its product offerings and increase accessibility to financial services for unbanked populations, further solidifying its presence in the African market.

Original Source: www.fintechfutures.com