Standard Chartered’s innovation, fintech investment and ventures arm and Yabx Technologies, a Tech Mahindra group company, have signed a set of agreements to formalise their joint investment in Furaha.
Furaha intends to make finance accessible across sub-Saharan Africa, with its first offering being in the education financing space. Furaha leverages Yabx’s AI driven alternate lending capabilities and SC Ventures’ banking and risk management to reduce the cost of delivering lending products and widen financial inclusion across underserved segments in Africa.
According to a statement released at the time of this news, Africa has the youngest demographics globally with over 600 million children under the age of 18 and one of the biggest expenses for families is the cost of education for their children. Most parents lack adequate liquidity or access to short-term borrowing instruments — like credit cards or affordable, digital loans — and regularly face challenges paying school fees on time. Delayed or unpaid school fees often results in children unable to continue or complete their education, which impacts their future prospects and importantly the community and country’s development. The challenge is especially acute for parents with monthly incomes under $500.
The firm offers a solution for parents and schools by creating an ecosystem of data for credit scoring and enabling commercial banks to channel affordable credit towards education financing. Furaha's headquarters are located in UAE’s Dubai International Financial Centre (DIFC) and will extend its offerings to local operating markets in Africa, starting with Uganda. Furaha has started offering loan products in Uganda with partners including Opportunity Bank, SchPay and MTN MoMo and plans are underway to expand to other countries in Africa.
Alex Manson, CEO, SC Ventures, says: "We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access. The partnership will help enhance purpose-driven financing in Africa and supports our work to rewire the DNA in banking."
Mohit Joshi, CEO and managing director, Tech Mahindra, adds: "The transformative power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity, particularly in regions like Africa. This strategic partnership aims to make financial solutions more inclusive and impactful. It's indeed an exciting beginning, and we look forward to collaborating with SC Ventures on many such initiatives that redefine financial empowerment and drive innovation globally."
Rajat Dayal, CEO, Yabx, continues: "This partnership with SC Ventures is a big moment for Yabx. It marks our first step into the education financing space. The long-term impact of a partnership like this is huge, and we’re excited to work with Furaha as they positively impact education outcomes in Uganda and other African countries in the coming months."