UK-based Fintech Farm has raised $7.4m in a late seed funding round to launch neobanks in developing economies.
Flyer One Ventures and Solid co-led the round with participation from TA Ventures, u.ventures, and AVentures Capital.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe proceeds will be used by Fintech Farm to launch neobanks in eight Asian and African nations over the next two years.
In November 2021, Fintech Farm forayed into Azerbaijan under the brand name Leobank, which claims to have issued 100,000 cards already.
Fintech Farm offers credit products to the retail segment including thin file customers. For setting foot in new markets, the firm collaborates with local banks.
The partnership allows Fintech Farm to launch in new markets without a banking licence. It expects to launch in Nigeria in the coming months.
Fintech Farm co-founder Nick Bezkrovnyy said: “In terms of the credit product, we see an opportunity for a “mass credit card” in Nigeria. Currently, credit cards issued by traditional banks are limited to the upper-middle class.
“At the same time, APRs of credit offerings from neobanks and alternative lenders may well be over 100%. We are going to fill this gap and accept those customers neglected by traditional banks and offer them fair interest rates.”
Flyer One, Fintech Farm noted, has a significant operational experience in Africa and other emerging markets.
Under the agreement, Flyer One partner and Genesis CEO Vladimir Mnogoletniy will join Fintech Farm’s board.
Genesis is a technology group that operates African e-commerce platform Jiji.
Mnogoletniy said: “We were looking for the right partner to enter the second most interesting market — neobanking — on the continent. We believe that Fintech Farm, with its extensive experience, is the right team for the move, and we’re delighted to announce this strategic investment.”