Kenyan FinTech startup, Paylend, focused on providing access to finance and digitizing MSMEs in Kenya has announced that it has raised $2 million seed investment from Next Chymia Consulting HK Limited, an Asian-based company that provides blockchain applications, consultancy services, and training to global entities.
Founded in September 2019, Paylend has digitized over 10,000 SMEs and growing with its users enjoying an array of services including access to credit for products and services and crowdfunding tools.
Paylend’s mission is to support MSMEs across Africa solve the problem of access to continuous capital while bridging the consumer data gap by connecting consumers to products and services. Paylend’s model enables last-mile consumer data collection that allows for a thorough understanding of consumer needs as it creates value for the SMEs ecosystem.
“I believe in impact-driven solutions. For a very long time, MSMEs have experienced stunted growth due to lack of efficient business tools or lack of funds. With Paylend, we are able to turn this around by helping these businesses access affordable credit quicker thus allowing them to have liquidity thus ensuring business continuity. Additionally, we form alliances with strategic partners with similar goals to present business tools that ease operations of these MSMEs,” said Eliutherius Juma, CEO, Paylend.
29% of formal SMEs in Africa have access to loans, line of credit, or overdraft. The numbers are significantly lower in the informal MSME sector that accounts for over 60% of businesses in the region.
“The value of the credit gap alone in Sub-Saharan Africa is at $90 billion that requires an increase of over 350% service to close the gap. To tackle these challenges, Africa needs transformational interventions. The formal banking landscape in Sub-Saharan Africa supports around 20% of Africa’s bankable population with the majority of people excluded from access to finance and wealth creation, this is a massive opportunity for FinTechs like Paylend.” Further stated Juma.
This investment will help Paylend grow its operation in the Kenyan market and open new markets in Tanzania, Zambia, and Nigeria as part of its next 3 years growth plan.
Paylend is an Adanian Labs startup, a Pan African smart technologies venture studio with a mission to build, nurture and scale 300 impact-driven tech startups across Africa.
“We are elated to see the progress that Paylend is making and how it is impacting MSMEs, which is one of the most off-grid sectors when it comes to digital transformation and financial inclusion. At Adanian Labs, our mission is to nurture innovative solutions and support innovators like Juma with the necessary resources including tech development, technical capacity, go-to-market strategies, team mentorship, and training as well as access to partnerships and resources. We are confident that this investment will see Paylend transform MSMEs in Kenya and beyond. Adanian Labs will continue to work with Paylend and support its rollout across Africa.” said Bendon Murgor, CTO, Adanian Labs.
Kenji Sasaki, the CEO of Next Chymia Consulting HK Limited said of the partnership “We are absolutely delighted to partner and support Paylend. Our vision is to ensure that no one is left behind in Africa when it comes to access to technology that can potentially facilitate wealth creation. We believe in the power of technology in transforming communities, and Paylend’s model is doing that at a micro level, which is where a lot of work is needed if we are to drive digitization. We have seen first-hand the potential that the informal sector in Africa has in solving key society issues and we are excited to be able to support and create impact.”
Paylend app can be accessed on android playstore, for both consumers and MSMEs, with innovative features on access to credit for businesses, crowdfunding tools, and prepayment of goods and services for consumers.