Fintech Farm, a recently formed fintech company based in the United Kingdom that produces digital banks in developing markets, has announced the completion of a $7.4 million seed round led by Flyer One Ventures and Solid. TA Ventures, Jiji, u.ventures, AVentures Capital and more.
The funding is meant to develop neobanks in eight countries from the emerging markets over the following 24 months, according to the business.
Digital banks, neobanks, challenger banks are among the most popular beneficiaries of venture capital funding in the fintech industry. Hundreds have emerged globally in recent years to confront incumbents in their respective areas.
Dmytro Dubilet, one of Monobank’s co-founders, wants to replicate the firm’s success in developing markets with his new venture.
He founded Fintech Farm with Nick Bezkrovnyy, a former director at KPMG UK, and Alexander Vityaz, the founder and CEO of Middleware.
Fintech Farm opened its first market, Azerbaijan, in November 2021. It used a credit-driven neobank model, offering loans via cards and a mobile app to customers with poor credit histories.
Fintech Farm’s business approach in Azerbaijan and other potential regions, according to Dubilet, is to deploy its app through collaborations with local banks.
In regards to the credit product, Bezkrovnyy stated that the company sees a market for a “mass credit card” in Nigeria.
Traditional bank credit cards are accessible to the upper-middle class. At the same time, he revealed in a statement, neobanks and alternative lenders’ loan products might have APRs of above 100%.
It will fill this void by accepting those customers who have been overlooked by traditional banks and providing them with competitive interest rates.
Because the West African nation, unlike so many affluent countries, has a sophisticated credit bureau system to document people’s credit histories, there is some skepticism over how Fintech Farm will use credit cards to operate.
But Dubilet is optimistic, citing the startup’s data science team, which he defines as “one of the best in the world,” as a source of inspiration.
Vladimir Mnogoletniy, co-founder of Genesis, the parent firm of African virtual classifieds portal Jiji, will team up with Fintech Farm’s board as part of this funding round. He’s also a partner at Flyer One, a co-lead investor.
The creators trust Mnogoletniy and his Jiji team’s skills and comprehending will be critical to Fintech Farm’s success.
Mnogoletniy commented that Jiji was searching for the ideal partner to join the neobanking area after becoming one of the biggest e-commerce platforms in terms of GMV. Fintech Farm was a strategic investment in that direction.
Fintech Farm wants to spend substantially on marketing and acquiring talent, particularly engineers and data scientists, as part of its expansion goals.