Akiba Digital, a South African fintech startup that eliminates the barriers to entry for small businesses to get financing through its lending partners, has raised more than US$1.1 million in pre-seed capital to help it expand its market share.
The startup creates inclusive scores using alternative databases, allowing lenders to rate people and small businesses who aren’t reachable by conventional credit agencies.
Expert DOJO and Oui Capital led the US$1.1 million pre-seed funding round, which also included Basecamp Fund, Soma Capital, Hustle Fund, Future Africa, LoftyInc, a former PayPal executive, and a few angel investors. Akiba Digital will use the funds to expand its market share in South Africa and connect over 20,000 SMEs to lenders via its ecosystem.
Tebogo Mokwena, CEO of Akiba Digital, stated, “The funding will also enable us examine other African areas that we are aiming to develop into. In two to three years, we want to be in ten or more African markets, enabling millions of small enterprises and individuals to get better financing thanks to our alternative scoring,” says Mokwena. In the long run, we intend to expand into South America and become one of Africa’s unicorns by 2027.”
Akiba Digital has already seen a 5X increase in revenue month over month, and has also developed Insyts, a SME platform that allows SMEs in need of capital to apply for funding and track their financial health all in one place.
Akiba Digital, which was founded in 2017, provides lenders with detailed credit analytics and real-time lending decisions, allowing them to better provide funds to small enterprises and individuals.