Mines secures $13m to grow emerging markets’ digital credit platform
Mines, a fintech startup re-inventing credit in emerging markets, has closed a Series A round of $13 million led by The Rise Fund, a global fund managed by TPG Growth, to intensify talent acquisition, continued growth in Africa, and expansion to South America and South-East Asia.
Also participating are Velocity Capital, Western Technology Investments, First Ally Capital, X/Seed Capital, NYCA Partners, Persistent Capital, Singularity Investments, Trans Sahara Investments, and the Bank of Industry.
“There are more than three billion adults globally without access to credit. Our vision is that every one of them will have instant access to credit in the next 10 years.” explains Ekechi Nwokah, Mines CEO. “We believe the best way to realize this vision is to partner with banks, retailers and mobile operators and power digital credit products tailored to their markets so they can create the customers of tomorrow, today.”
Mines provides a Credit-as-a-Service digital platform that enables institutions in emerging markets to offer credit products to their customers; no smartphone is required. Leveraging their own data sets, domestic institutions are able to serve loans to customers ignored by available credit systems and open up entirely new revenue opportunities.
By mining high-volume data like phone records, bank records, and payment transactions in real-time, Mines can instantly assess credit risk in markets that lack robust credit bureau infrastructure.It then integrates its risk models with identity, origination, payments, loan lifecycle management, and customer service to form a holistic platform. The net result is a seamless user experience where partners’ customers can apply for and receive a loan in less than 60 seconds or make instant purchases with virtual or physical credit cards.
According to the firm, it has hardened its proprietary technology in Nigeria where it has been used by over 1 million customers since launching in 2017.“It is now the leading provider of consumer credit in the country, counting mobile operators 9mobile and Airtel, payment processors Interswitch and NIBSS, along with several banks amongst its partners.
“What we have done differently is take Silicon Valley technology and built it into a product that is robust enough for emerging markets like Nigeria, Brazil, or Indonesia”, says Chief Scientist Kunle Olukotun. “We can extend credit to all types of customers, including customers without smartphones or even bank accounts as these are the people who need credit the most.”
As part of the financing, Yemi Lalude from TPG Growth and Willem Willemstein from Velocity Capital have joined Mines’ Board of Directors.“They have been joined by VP Commercial Adia Sowho, who has successfully scaled several digital financial services at one of Nigeria’s largest mobile operators, to grow the business”, a statement from the firm read in part.
Lalude says, “Mines combines world-class artificial intelligence and extensive use of data with a strong focus on local partnerships to build financial inclusion. We are excited to partner with them to drive financial access across the world.”
Sowho says “Scaling a digital product in Africa requires a deep understanding of two things – distribution and partnerships. In Nigeria, Mines has demonstrated that its platform is flexible enough to enable partners with consumer reach across the income pyramid, activate a wide swath of distribution channels, from rudimentary USSD to more advanced web-based ones. We look forward to building more partnerships in Nigeria and beyond”.