Indexa platform that uses real-time consumer data to help businesses of all sizes and in all industries make better, safer and faster credit decisions, just raised $3 million in a round of table.
Target Global, a Berlin-based pan-European venture capital firm, led the round, adding to its extensive investments in Nigerian startups including Kuda, Kippa and Edukoya. Ricardo Schäefer, a partner in the firm, will join Indicina’s board of directors. Greycroft and RV Ventures both joined in this round.
Lenders can use Indicina to improve credit scoring and bank sentiment analysis, as well as access machine learning-based financial analytics and better customer insights they don’t already have and reduce the risks of unsecured loans.
Another intriguing aspect of Indicina’s approach is that manual loan processors can use the platform to double or triple their business without inflating their loan books.
Target Global and Greycroft invested in Indicina because of its innovative method of solving Africa’s credit problem.
Both companies have backed Indicina because it uses data to solve the loan qualification problem that was previously determined by incomplete credit scores, according to its partners, Schäefer and Will Szcxzerbiak.
Credit bureaus and crowdfunding platforms are among fintech partners. Indicina, which Johnson co-founded with CTO Jacob Ayokunle and chief data scientist Carlos del Carpio, has more than 120 users, including banks, non-bank lenders and fintechs, according to Johnson. Polaris Bank, LipaLater, VFD, Zilla and CreditDirect are just a few.
According to Indicina’s website, it has helped these clients process more than $3 billion ($5 million) in loans and disburse more than $700 million ($1.17 million).
Clients use API calls to parse financial documents, which generate revenue for the startup. To expand its capabilities and revenue sources, the startup will launch a B2C service in the coming weeks. Indicina is betting that consumers will also need this information.
It has already assessed bank statements in real time for lenders to make critical choices. The credit and financial management platform, such as Credit Karma, is the easiest way to define it.
Indicina already has a presence in Nigeria and Kenya, and this new capital will help the company expand into other African markets.
It will also allow the startup to strengthen its core product offerings, develop more consumer credit referral products, and improve its infrastructure, according to the company’s announcement.
Indicina will be able to expand its product development in this area with the funding, as it employs more data scientists and machine learning engineers.
Access to credit is an essential element of the adoption of financial services in any region. However, while large corporations and wealthy individuals have no trouble obtaining loans from banks in Nigeria, the retail and SME segments are underserved.
Access to real-time loans is becoming increasingly important as African financial systems become increasingly computerized.
Credit bureau systems in Africa are in desperate need of an overhaul to address these shortcomings, but as this is a daunting challenge, the infrastructure platforms that provide the credit underwriting processes present themselves as viable alternatives on the market.
In today’s economy, having access to finance is a requirement. Credit is much more than a means of making purchases; it allows individuals and businesses to meet their daily needs.
Many people don’t recognize the importance of credit until their access is restricted, which is a sad truth. Indicina, for example, constantly invents to offer new products that benefit both SMEs and individuals.
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