Kenyan Digital Credit Provider MyCredit Limited has raised $3 million in debt funding from impact investment firm BlueOrchard.
The non-bank financial services company says it will use the new funding for onward lending and scale its operations in the country. The firm intends to offer affordable and medium-term financing of up to a maximum period of three years to its customers who are in the education sector.
The company is specifically targeting private school owners seeking both secured and unsecured funds. They can borrow up to between Ksh1 million to Ksh5M secured funds. This will be done through its newly launched education product known as “Kuza Elimu Loan”.
With its headquarters in Kenya, MyCredit currently serves over 10,000 customers. MyCredit CEO, Wangaruro Mbira said the institution has already disbursed 11,014 loans to customers across the country with a total value of Kshs.7.88 billion in the last 7 years,
“We have over 10,500 customers and we will be opening more branches gradually in all the 47 counties and commercial centers to be able to reach more entrepreneurs in the education sector,” he added.
The funding comes just months after MyCredit also received a $2.6 million loan facility from Social impact investor and worldwide cooperative Oikocredit to fund SMEs in Kenya. According to a statement from the two, the funding which was announced in February this year fulfilled MyCredit’s mission to support businesses and local communities to achieve greater financial freedom through tailor-made loans to small and medium enterprises (SMEs), professionals and civil servants.
With this investment, MyCredit said it will continue to improve access to capital for SMEs in a fast, convenient and affordable way. When it announced the funding, the institution revealed that it had already disbursed 15,500 loans to customers across Kenya with a total value of KES 6.08 billion in the last six years. Over that period, MyCredit had also opened 15 branches and created 158 jobs.
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