Kenya’s MyCredit secures $3 million in debt funding
MyCredit Limited, a Kenyan digital credit provider, has raised $3 million in debt finance from impact investing firm BlueOrchard.
The firm claims it would utilise the fresh funds to expand its activities in the country.
The company seeks to provide its customers in the education industry with affordable and medium-term financing for up to three years.
Private school owners seeking both secured and unsecured funds are targeted by the company. They can borrow between Ksh1 million and Ksh5 million in secured funds.
This will be accomplished through its recently introduced education offering, "Kuza Elimu Loan."
MyCredit, which has its headquarters in Kenya, currently serves over 10,000 consumers. MyCredit CEO Wangaruro Mbira stated that in the last seven years, the company has disbursed 11,014 loans to customers across the country totaling Kshs.7.88 billion.
"We have over 10,500 customers and we will be opening more branches gradually in all the 47 counties and commercial centres to be able to reach more entrepreneurs in the education sector," he went on to say.
MyCredit previously got a $2.6 million loan facility from social impact investor and global cooperative Oikocredit to assist SMEs in Kenya.
According to a joint statement, the funding announced in February this year fulfilled MyCredit's mission of assisting businesses and local communities in achieving greater financial freedom through tailor-made loans to small and medium-sized enterprises (SMEs), professionals, and civil servants.
MyCredit stated that with this investment, it will continue to improve SMEs' access to capital in a timely, easy, and cost-effective manner. When the money was disclosed, the organisation revealed that it had already granted 15,500 loans to consumers across Kenya for a total of KES 6.08 billion in the previous six years. MyCredit also opened 15 branches and produced 158 jobs over that time period.