Nigerian
fintech startup AjoMoney is a community financing platform that digitises
Africa’s centuries-old rotating savings and credit associations (ROSCAs),
making it possible for the 65 per cent of Africans who are either unbanked or
underbanked to access zero or low interest credit when they collectively save
and invest money.
Founded
in 2021 by Ibrahim Adepoju and Chineye Ochem, AjoMoney operates on different platforms for consumers, mobile
agents, cooperatives and developers. Consumers can easily manage and facilitate
collective savings with friends and family, at home and abroad. Mobile agents
earn when they manage and facilitate savings, credit and investment for the
unbanked and non-technical consumers.
Cooperatives,
meanwhile, easily run their operations digitally on AjoMoney, and developers
can integrate rotating savings and credit into their platforms as a value-added
solution.
An
all-singing, all-dancing platform, then, and one that has seen strong uptake.
AjoMoney has so far acquired over 12,000 users, and US$750,000 in gross
transaction value (GTV). Adepoju, who is AjoMoney’s CEO, told Disrupt Africa
around 80 per cent of its business had been acquired organically.
“Savings,
credit and investment are not new in the fintech space. Several startups are
successfully operating in this margin, even though the highest percentage put
more focus on the banked population. People having access to the internet or a
smartphone doesn’t mean that they are banked, many are still underbanked and
finding it difficult to access loans from financial institutions to support
their business or make early investments. The reason for the zero to little
trust from those financial institutions is poor credibility and little to no
financial data on many of the underbanked population,” he said.
AjoMoney
is primarily a credit platform, which chooses to solve problems around access
to credit by leveraging on community-based connections and grassroots
recommendations to design a financing ecosystem spanning savings and
investments which makes it possible for members of a clan or community to
easily build credibility.
“While
the modern community and brands promote savings and investment, AjoMoney
believes that you do not have to save money for six to 12 months to achieve
your target goals, when you can save for three months and get what you need
through zero-interest credit via community financing, and continue your savings
to pay back. With this, people will achieve a lot and evade the challenges of
rapid inflation in Africa,” said Adepoju.
The
startup, which raised a seed round led by Tekedia Capital syndicates in April
and monetises primarily via commissions and subscription fees, is already
planning expansion into other markets. Adepoju said it is currently in stealth
mode in Rwanda.
“AjoMoney
has been successfully incorporated in Rwanda, and is processing the necessary
regulatory requirements to go live publicly,” he said.
Source: disrupt-africa.com