Nigerian credit startup Migo, formerly known as Mines, has raised a US$20 million Series B funding round to finance its expansion to Brazil and continued growth in its home market.
Founded in 2014, Migo provides a Credit-as-a-Service digital platform that enables institutions such as banks, telecoms and retailers in emerging markets to offer credit products to their customers, with no smartphones required.
These companies integrate Migo in their apps and Migo underwrites customers to provide them with a digital account and credit line. The customers can use this credit line to make purchases from a merchant or withdraw cash without the need for point-of-sale hardware or plastic cards.
The startup raised a US$13 million Series A round last year and has now followed that up with US$20 million in Series B funding led by Valor Capital Group, a Brazil-focused venture capital firm. Existing investors The Rise Fund and Velocity Capital have also joined the round, which will be used to support talent acquisition and Migo’s launch into the Brazilian market, as well as its continued growth in Nigeria.
Migo has already underwritten more than seven million customers to date, while an estimated 90 million adults in Nigeria and 100 million adults in Brazil without access to credit means there is a massive area of untapped growth.
“Our mission is to drive commerce around the world by injecting liquidity into the last-mile retail sector,” said Migo chief executive officer (CEO) Ekechi Nwokah. “We believe the best way to achieve this goal is to build digital infrastructure to empower local enterprises that already serve millions of consumers and small businesses.”
As part of the financing, Antoine Colaco from Valor Capital has joined the Migo Board of Directors.
“Migo combines world-class technology with a deep understanding of the needs of consumers and small businesses in emerging markets. We are excited to partner with them in Brazil and beyond,” Colaco said.
Migo enables some of the largest retail enterprises in Africa – from mobile operators like 9mobile and MTN to payment companies Interswitch and Flutterwave to banks like Bank of Industry and Fidelity Bank. It is now expanding to Brazil and partnering with some of the largest retail enterprises in Latin America.
“The typical Silicon Valley approach of move-fast-and-break-things doesn’t work well in emerging markets. To create durable solutions, it is important to combine the audacity of cutting-edge technology with humility to the nuances of local markets,” said VP of growth Adia Sowho.
