Mobile lending app Branch raises Sh350 million for expansion drive in Kenya
The firm has since disbursed loans to more than 1 million Kenyans
The new capital investment is a deal based on a commercial paper issuance that was arranged by Centum-owned capital-raising advisory firm, Barium Capital.
“We have been impressed by what they’ve been able to achieve so far, and we are very happy to have secured a seat on the Branch express train for our investors,” said Teresia Muthoni, chief executive of Barium Capital.
The Silicon Valley start-up made a similar move last year when it raised Sh200 million for the Kenyan market expansion.
The firm has since disbursed loans to more than 1 million Kenyans and hopes to disburse Sh 2.5 billion across its markets by the end of the year.
Besides Branch, there are nearly a dozen other major players in the market which issue short-term loans via mobile money.
Data from the Communications Authority indicates that 6 out of 10 Kenyans have a mobile banking account, which makes Kenya one of Branch’s key markets.
The company said it plans to expand into savings and payment products in the future for its more than a million users.
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