Paylend, a Kenyan FinTech startup focused on providing access to financing and digitizing MSMEs in Kenya, announced today that it has raised an initial investment of $ 2 million from Next Chymia Consulting HK Limited, an Asia-based company that provides blockchain. applications, consulting services and training to global entities.
Founded in September 2019, Paylend has digitized more than 10,000 SMEs and grows with its users enjoying a variety of services including access to credit for products and services and crowdfunding tools.
Paylend’s mission is to help Africa’s MSMEs solve the problem of access to ongoing capital, while at the same time closing the consumer data gap by connecting consumers with products and services. Paylend’s model enables last-mile consumer data collection that enables a deep understanding of consumer needs as it creates value for the SMB ecosystem.
“I believe in impact-driven solutions. MSMEs have long been stunted due to a lack of efficient business tools or lack of funds. With Paylend, we can reverse this by helping these businesses access affordable credit faster, allowing them liquidity and ensuring business continuity.
“In addition, we form alliances with strategic partners with similar objectives to present commercial tools that facilitate the operations of these MSMEs ”, said Eliutherius Juma, CEO of Paylend.
29% of formal SMEs in Africa have access to loans, lines of credit or overdrafts. The figures are significantly lower in the informal sector of MSMEs, which represents more than 60% of the companies in the region.
“The value of the credit gap in sub-Saharan Africa alone is $ 90 billion, requiring an increase of more than 350% in service to close the gap. To address these challenges, Africa needs transformative interventions.
“The formal banking landscape in Sub-Saharan Africa supports around 20% of Africa’s bankable population with the majority of people excluded from access to finance and wealth creation, this is a great opportunity for FinTechs like Paylend. ” Juma.
This investment will help Paylend grow its operation in the Kenyan market and open new markets in Tanzania, Zambia and Nigeria as part of its growth plan for the next 3 years.
Paylend is a startup of Adanian Labs, a pan-African smart tech risk study with a mission to build, nurture and scale 300 impact-driven tech startups in Africa.
“We are delighted to see the progress Paylend is making and how it is impacting MSMEs, which is one of the most disconnected sectors of the web when it comes to digital transformation and financial inclusion.
“At Adanian Labs, our mission is to foster innovative solutions and support innovators like Juma with the necessary resources, including technology development, technical capacity, go-to-market strategies, mentoring and team training, as well as access to partnerships and resources.
“We are confident that this investment will see Paylend transform MSMEs in Kenya and beyond. Adanian Labs will continue to work with Paylend and support its implementation in Africa, “said Bendon Murgor, CTO of Adanian Labs.
Kenji Sasaki, CEO of Next Chymia Consulting HK Limited, said of the partnership: “We are absolutely delighted to partner with and support Paylend.
“Our vision is to ensure that no one is left behind in Africa when it comes to access to technology that can potentially facilitate wealth creation.
“We believe in the power of technology to transform communities, and the Paylend model is doing it at a micro level, which is where a lot of work is needed if we are to drive digitization.
“We have seen first-hand the potential of the informal sector in Africa to solve key societal problems and we are excited to be able to support and make an impact ”.
The Paylend application can be accessed in the Android game store, both for consumers and for MSMEs, with innovative features on access to credit for companies, crowdfunding tools and prepayment of goods and services for consumers.
