PayHippo was launched last year in Nigeria as a digital solution providing vital loans to SMEs in the country and Africa at large. The selling point of the company was that they would be able to approve loans – in three hours or less – for those whom banks and other credit facilities might look down upon because of their credit history.
After spending a year in the market, it is laudable that the start-up has now secured a $1 million pre-seed funding to scale its services even higher.
The company has enjoyed stellar success with its in-house, alternative credit score model which it uses to assign loans and loan limits to those who come through the digital doors for fast cash. Given a 97% repayment rate of loans, it stands to reason that whatever the company is doing simply works.
The start-up had been running on the goodwill and funding of some Nigerian angel investors, family and friends as well as colleagues who believe in the idea. Now, the likes of Launch Africa, Sherpa Ventures, DFS Lab and Hustle Fund, among others, have come together to help the start-up attain even new heights.
The current funding will not only increase the rate of loans that can be given out but also empower the start-up to develop new products for the target market. Going this way, they stand to become one of the next best things to come out of Africa in the fintech space.