Fido, the digital lending platform based in Ghana and Uganda, has successfully secured $10 million in Series B funding. The investment comes from MASSIF, the financial inclusion fund managed by FMO, the Dutch entrepreneurial development bank.

Bridging the SME Finance Gap in Africa

Fido was founded in 2015 by Nadav Topolski, Tomer Edry, and Nir Zepkowitz with the mission of providing individuals and businesses access to credit without the traditional barriers of fees, collateral, or guarantors. The company leverages technology, alternative data, and artificial intelligence to underwrite and grant instant access to credit to more than 650,000 customers who may not have a formal financial track record.

Fido's Growth and Achievements

According to the company's website, Fido has underwritten 3 million loans valued at $300 million to date. In 2022, the fintech had raised a total of $38 million, including a $30 million Series A round led by Israeli private equity fund Fortissimo Capital, with participation from Yard Ventures, a VC fund by Harvard alumni.

Expanding Reach and Impact

The latest $10 million Series B funding from FMO's MASSIF Fund will enable Fido to grow its loan book in Ghana and Uganda, while also allowing the company to expand into new African countries. Crucially, the funding will help Fido maintain its focus on supporting bottom-of-pyramid clients who have traditionally been underserved by traditional financial institutions.

FMO's Commitment to Financial Inclusion

MASSIF, FMO's financial inclusion fund, supports intermediaries that reach out to micro, small, and medium enterprises (MSMEs) that have been disproportionately affected by a lack of access to financial services. By investing in Fido, FMO is demonstrating its commitment to bridging the $331 billion SME finance gap in Africa and empowering underserved communities through innovative digital lending solutions.

Fido's successful Series B funding round underscores the growing demand for accessible and inclusive digital financial services in Africa. By leveraging technology and alternative data, the company is well-positioned to continue expanding its reach and impact, providing individuals and businesses, particularly those at the bottom of the pyramid, with the credit they need to thrive and contribute to the continent's economic development.