IFC evaluating possible equity investment in Ghana-based fintech

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International Finance Corporation, the World Bank’s development finance institution, is evaluating a possible deal in a 6-year old fintech startup based in Ghana. If it goes ahead, the startup, Fido, will have $10 million in hand, or about half of what it’s looking to raise in total for the round. Should the investment be approved, the IFC will hold a minority stake in the business, the exact size of which has not been disclosed.

Fido will use any capital it raises to scale its business by investing in its technology, its product, and the company’s operations. The management team has set itself a goal of expanding its business into six new markets by 2025. Fido’s customers download the startup’s app to their mobile phones through which they apply for a loan, receiving an instant decision and the funds. Since 2019, the startup has funded more than $86 million in loans to over 330,000 customers. Of those, the vast majority, some 78%, are private individuals. The rest are MSMEs that use the loan proceeds for working capital purposes.

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