Mobile loans company Branch International has raised Sh350m to expand its loan product offerings in Kenya.
The commercial paper issuance was arranged by Centum-owned capital-raising advisory firm, Barium Capital, marking the second time the San Francisco headquartered technology company has issued commercial paper in the Kenyan market.
In 2017, Branch raised Sh200 million through a commercial paper issuance and has experienced exponential growth since it ventured into the Kenyan market. Since launching in 2015, the company says it has garnered more than a million users, disbursed more than $100 million, and has distributed more than 6 million loans.
In Kenya alone, the company issues tens of thousands of loans a day and continues to see high-volume growth. Worldwide, Branch says it expects to disburse over $250 million in 2018.
Commenting on the fundraise, Teresia Muthoni, CEO of Barium Capital said, “Branch has built an absolutely first-rate operation. We have been impressed by what they’ve been able to achieve so far, and we are very happy to have secured a seat on the Branch express train for our investors.”
Branch’s first product offering is lending, but the company has also announced plans to expand into savings and payment products in the future.
“The rapid growth of smartphone adoption, paired with the affinity for mobile money has put Kenya at the forefront of the financial technology explosion,” said Branch Head of Global Operations Daniel Szlapak. “We’re proud that our services have seen such high adoption here and are excited to continue to build best-in-class products for Kenyan customers.”
The new funding says represents the Mobile loan’s second large investment announcement in 2018. In March, the company raised a $70 million Series B investment to expand its financial offerings to additional countries.
Branch is also a popular financial service in Nigeria, Tanzania, and is currently testing the Mexican and Indian markets.