On Thursday, CreditEase announced its venture fund, Credit FinTech Investment Fund (CEFIF) recently participated in the $70 million Series B investment round in market fintech company, Branch International. The fund reported that other investors of the funding round included International Finance Corporation (IFC), Andreessen Horowitz, Trinity Ventures and Victory Park.
Founded in 2015, Branch International stated it delivers world-class financial services to the “mobile generation.” The company also noted that it eliminates the challenges of getting a loan by using the data on your phone to create a credit score:
“The spread of smartphones presents an incredible opportunity for the world’s emerging middle class to access banking options and achieve financial flexibility. We are revolutionizing banking in Africa, and will soon expand to other regions across the globe.”
Matt Flannery, Co-founder and CEO of Branch, who was also the Co-Founder and CEO of Kiva, commented:
“I’ve been working in microfinance — specifically in Africa — my whole career. Over the past decade, I witnessed the rapid spread of technology in the region. Microfinance has been slow to adopt mobile technologies, and customers have not reaped the benefits of quicker access to capital and more efficient pricing. After years of trying to change microfinance institutions from the outside, I decided to start one myself.”
Anju Patwardhan, Managing Director of CreditEase FinTech Investment Fund, also stated:
“A financial revolution is taking place in emerging markets, supported by increasing penetration of smart phones, availability of alternative data sources and changing consumer mindsets. There is a huge unmet demand for financial services in emerging markets. FinTech companies like Branch are leveraging these mobile technologies and their deep local market knowledge to capture these unprecedented market opportunities and promote financial inclusion.”
Patwardhan went on to add:
“Matt is a seasoned entrepreneur with a great track record, as he led Kiva for 10 years to disburse over $1 billion in loans to small businesses in over 80 countries. We are pleased with the Branch team’s track record and insights into these fast-growing markets, and we look forward to leveraging our CreditEase expertise in our new partnership with Branch International.”