The fintech industry in Nigeria is becoming more popular and startups are capitalizing on the trend. Migo, a Nigerian fintech startup is a company that focuses on offering credit-as-a-service to big companies. Migo has recently raised a Series B round of $20 million – a round that was led by Valor Capital Group, a Brazil-focused venture capital company.
The Series B round also included investors such as Velocity Capital and The Rise Fund, both of which were already existing investors in the business. This round is followed by a Series A round that was raised in August 2018 ($13 million).
Migo offers its credit scoring services to big corporations such as telecoms and financial institutions. Two of the largest clients of Migo are 9Mobile and MTN – Nigeria’s biggest telecom operators. Other clients in Migo’s portfolio are large tech firms such as Flutterwave and Interswitch, a company that became Africa’s first fintech unicorn.
What the Migo service does is providing a bridge for large corporations to have a competitive advantage by offering credit rating products, especially in a time when multiple fintech apps are offering attractive loan services direcly to consumers – aa trend that has been dominating Africa’s economy for quite some time now.
The reason why smaller fintech companies are dominating the African economy is that they offer small loans and the process is very quick for customers, offering them a collateral-free credit. How these companies evaluate credit worthiness is by tracking GPS data, contact list and texts (including bill payment receipts and bank balances).
However, in addition to helping large corporations with their credit services, Migo also has a consumer-facing quick loan service called Kwikmoney.
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Fintech startup Migo raises $20 million – dominance in Nigeria, expansion in Brazil was first posted on December 6, 2019 at 2:03 am.