Mines, a fintech startup re-inventing credit in emerging markets, has closed a Series A round of $13M led by The Rise Fund, a global fund managed by TPG Growth. However, Mines plans to use its investment for talent acquisition, continued growth in Africa, and expansion to South America and South-East Asia.
Mines provide a credit-as-a-service digital platform that enables institutions in emerging markets to offer credit products to their customers; no smartphone is required. Leveraging their own data sets, domestic institutions are able to serve loans to customers ignored by available credit systems and open up entirely new revenue opportunities.
“There are more than 3 billion adults globally without access to credit. Our vision is that every one of them will have instant access to credit in the next 10 years,” said Ekechi Nwokah, CEO at Mines.
“We believe the best way to realize this vision is to partner with banks, retailers and mobile operators and power digital credit products tailored to their markets so they can create the customers of tomorrow, today.”
By mining high-volume data like phone records, bank records, and payment transactions in real-time, Mines can instantly assess credit risk in markets that lack robust credit bureau infrastructure. It then integrates its risk models with identity, origination, payments, loan lifecycle management, and customer service to form a holistic platform. The net result is a seamless user experience where partners’ customers can apply for and receive a loan in less than 60 seconds or make instant purchases with virtual or physical credit cards.
The company has hardened its proprietary technology in Nigeria where it has been used by over 1 million customers since launching in 2017. It is now the leading provider of consumer credit in the country, counting mobile operators 9mobile and Airtel, payment processors Interswitch and NIBSS, along with several banks amongst its partners.
“What we have done differently is taking Silicon Valley technology and built it into a product that is robust enough for emerging markets like Nigeria, Brazil, or Indonesia”, said Kunle Olukotun, professor of electrical engineering and computer science at Stanford University.
“We can extend credit to all types of customers, including customers without smartphones or even bank accounts as these are the people who need credit the most.”
As part of the financing, Yemi Lalude from TPG Growth said Mines combines world-class artificial intelligence and extensive use of data with a strong focus on local partnerships to build financial inclusion. “We are excited to partner with them to drive financial access across the world.”
Mines started out as a research project on high-performance artificial intelligence led by Olukotun, a professor of computer engineering at Stanford University. It came to life after working on big data projects at Amazon Web Services, after which they teamed up to direct the technology towards solving the grand challenge of financial access.
According to Adia Sowho, vice president, commercial at Mines, scaling a digital product in Africa requires a deep understanding of two things – distribution and partnerships.
“In Nigeria, Mines has demonstrated that its platform is flexible enough to enable partners with consumer reach across the income pyramid, activate a wide swath of distribution channels, from rudimentary USSD to more advanced web-based ones. We look forward to building more partnerships in Nigeria and beyond.”