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Branch Mobile lending app Branch raises Sh350 million for expansion drive in Kenya

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The firm has since disbursed loans to more than 1 million Kenyans

play (FSD Kenya)

Mobile loans company Branch International has raised Sh350 million capital investment to further expand its services in Kenya.

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​.

play Branch International has raised Sh350 million capital investment to further expand its services in Kenya. (VOA News)

 

“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.

Short-term loans

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.