Africa-Asia fintech Jia secures $4.3 million in seed funding

TL;DR Breakdown

  • Fintech firm Jia, targeting micro and small businesses in emerging markets, has secured $4.3 million in seed funding led by TCG Crypto, along with an additional $1 million commitment for on-chain liquidity.
  • Jia plans to strengthen its operations in Kenya and the Philippines before exploring new markets in West Africa, Latin America, and Asia.
  • The company’s unique model uses decentralized finance to offer loans and provides borrowers with tokens post-repayment, essentially turning borrowers into owners.

Opening a new chapter in blockchain-based finance, the fintech firm Jia has secured a significant investment of $4.3 million in seed funding.

This early-stage financial boost has been spearheaded by TCG Crypto, bolstered by several participating entities including BlockTower, Hashed Emergent, Saison Capital, and Global Coin Research.

Additionally, an extra $1 million has been allocated for on-chain liquidity, underscoring the confidence of investors in Jia’s model.

Jia creating waves in Kenya and the Philippines

Jia, founded in 2020 by a team of former Tala executives, including Zach Marks, Cheng Cheng, Ivan Orone, and Yuting Wang, focuses on providing loans to micro and small businesses in emerging markets.

As of now, the company’s operations are primarily concentrated in Kenya and the Philippines, but with this fresh infusion of capital, the company plans to enhance its presence in these areas and then venture into new territories in West Africa, Latin America, and Asia.

Jia operates on a unique model, utilizing decentralized finance to disburse loans to borrowers who then receive tokens post-repayment. These tokens are redeemable based on profits at a predetermined rate, making borrowers into owners with each repayment.

“Providing affordable financing for micro-businesses is our core mission, and when these businesses repay their loans, they become part of Jia by earning token rewards,” explained Marks, the CEO and co-founder of Jia.

A new model of community finance

Jia’s business model is inspired by community finance groups, notably popular in Africa, which allow borrowers to hold shares and earn from the group. This approach has been replicated in a digital space, creating a new opportunity for micro-businesses to access funds and build wealth.

Jia offers loans up to $5,000, significantly higher than most digital lenders and loan apps, which typically cap credit at $1,000. This allows the company to fill an existing gap in the market, catering to small businesses that require more substantial funding to grow.

“With our loans ranging from $200 to $5,000, we are competitively priced, charging about a third of the interest rate of typical consumer fintech lenders,” Marks stated.

Tapping into local networks

A critical aspect of Jia’s strategy is integration into the apps of local partners, such as Ilara Health. This allows Jia to leverage existing networks and gain proprietary data, which aids in making more informed underwriting decisions.

With small enterprises making up 90% of Africa’s businesses, the lack of access to finance is a significant barrier to growth, creating a financing deficit estimated at $330 billion.

Fintech companies like Jia are poised to bridge this gap, opening up the world’s capital to MSMEs and offering a path to economic resilience.

As it continues to expand, Marks remains optimistic about the company’s role in shaping the future of finance. “Jia is not just providing financing, we are providing a path to economic resilience and this opportunity to build wealth in a new way that hasn’t been done before.”

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Africa-Asia fintech Jia secures $4.3 million in seed funding

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年5月22日 13:15
Next 2023年5月22日 16:04

Related articles

  • The dangerous consequences of China’s absence at G20

    TL;DR Breakdown China’s President Xi Jinping chooses not to attend the upcoming G20 summit in India. The move can be seen as a strategic sidestep or a snub, causing ripples in global diplomacy. Historically, the country has never missed a G20 summit, making this absence significant. Description China’s unexpected decision to sidestep the upcoming G20 summit in India sets off alarms for geopolitical pundits. Is this merely a snub or a deeper indicator of Beijing’s waning interest in global economic cooperation? Rising Tensions and Uncertainty in the Global Arena When Western officials learned that President Xi Jinping wouldn’t grace the G20 summit … Read more China’s unexpected decision to sidestep the upcoming G20 summit in India sets off alarms for geopolitical pundits. Is this merely a snub or a deeper indicator of Beijing’s waning interest in global economic cooperation? Rising Tensions and Uncertainty in the Global Arena When Western officials learned that President Xi Jinping wouldn’t grace the G20 summit with his presence, it felt like the culmination of a year’s worth of resistance from China. Instead, they’ll be dealing…

    Article 2023年9月2日
  • Is Vitalik Buterin making deals with SEC?

    TL;DR Breakdown The release of the Hinman Papers provokes lively commentary and adds an exciting twist to the Ripple vs. SEC battle, with one name raising eyebrows – Vitalik Buterin. The SEC’s Office of General Counsel (OGC) suggested deleting the draft’s language around ETH. Stuart Alderoty, Ripple’s Chief Legal Officer, has called for a probe to provide light on the factors that influenced Hinman’s decision-making. The long-awaited Hinman documents have been released, and Ethereum co-founder Vitalik Buterin has a significant role to play. According to reports, Vitalik Buterin was involved in the process that resulted in the infamous Hinman speech, which provided ETH alone with a special clarity of not being a “Security” and revealed the newest documents.  The recently released emails and speech drafts, which were made public following an 18-month investigation and repeated court orders, provide critical insights into the behind-the-scenes elements of Hinman’s declaration. Judge Torres assessed that the documents should be made public less than a month ago. Hinman documents unsealed – Here’s all there’s to know According to newly released documents including revisions to a…

    Article 2023年6月16日
  • Unity reverses runtime fee policy following backlash

    TL;DR Breakdown Popular game engine maker Unity has reversed its decision to charge developers a runtime fee. Industry response and lingering concerns in the gaming community. Description Unity, the popular game engine maker, recently faced backlash from game developers over its revised Unity Runtime Fee policies. In response to the uproar on social media, Unity Create President Marc Whitten issued an apology and made significant revisions to the fee structure. The initial announcement of the new runtime fee model caused concern among … Read more Unity, the popular game engine maker, recently faced backlash from game developers over its revised Unity Runtime Fee policies. In response to the uproar on social media, Unity Create President Marc Whitten issued an apology and made significant revisions to the fee structure. The initial announcement of the new runtime fee model caused concern among smaller game developers who questioned its impact on their profitability. Unity reverses per-install basis charges Under the original plan, developers would be charged on a per-install basis once they reached specific revenue thresholds. In the wake of the criticism, Whitten…

    Article 2023年9月24日
  • Reserve Bank of Australia maintains interest rate at 4.1% while inflation remains elevated

    TL;DR Breakdown The Reserve Bank of Australia (RBA) has kept its interest rate unchanged at 4.1 percent for the third consecutive month. While inflation in goods prices has moderated, the costs of many services are increasing notably, and rent inflation remains high. Treasurer Jim Chalmers highlighted that the RBA had pointed out economic uncertainties, including the “painful squeeze” on household finances. Description The Reserve Bank of Australia (RBA) has maintained its interest rate at 4.1 percent for the third consecutive month. However, they have indicated that additional rate hikes might be necessary to keep inflation in check. This decision keeps the cash rate at its highest level since April 2012 and marks the fourth pause in the … Read more The Reserve Bank of Australia (RBA) has maintained its interest rate at 4.1 percent for the third consecutive month. However, they have indicated that additional rate hikes might be necessary to keep inflation in check. This decision keeps the cash rate at its highest level since April 2012 and marks the fourth pause in the current cycle of rate increases,…

    Article 2023年9月5日
  • China’s Shandong Province sets ambitious $20.5 billion metaverse goal by 2025

    TL;DR Breakdown China’s Shandong province has released draft guidelines with the aim of building a $20.5 billion metaverse market by 2025. The province plans to construct metaverse-related industrial parks and nurture at least 100 metaverse firms. The local government in Shandong aims to facilitate companies in applying for at least 3,000 international and domestic patents by 2025. The metaverse is defined as an integrated digital space combining technologies like virtual reality, blockchain, and artificial intelligence. Shandong’s initiative aligns with China’s broader ambitions in blockchain technology and the metaverse, as evidenced by similar plans in other provinces and a national focus on homegrown blockchain technology. Description In a bold move, China’s Shandong province has released draft guidelines to boost its metaverse industry, targeting a market size of 150 billion yuan (US$20.5 billion) by 2025. The eastern Chinese province is soliciting public feedback on the guidelines until September 8. A comprehensive plan for metaverse development The Shandong provincial government has outlined a … Read more In a bold move, China’s Shandong province has released draft guidelines to boost its metaverse industry, targeting…

    Article 2023年9月7日
TOP