Financial services company Branch has raised over Sh900 million to meet the huge demand for mobile phonebased loans in Kenya. Branch app uses individual phone data such as call and SMS history as well as your Facebook account’s level of activity to calculate a credit score for its customers.
The firm has nearly 150,000 clients in Kenya, with each customer having taken out at least three loans on average ranging from Sh250 to Sh50,000.
Founder and CEO Matt Flannery said the new funds will help the company expand to meet rising credit demand in Kenya and enter new markets.
It has recently started operation in Tanzania and plans to disburse 1,000,000 additional loans.
Loans disbursed through the mobile phones are growing fast in Kenya due to high use of cellphones, estimated at 80 per cent of the population.