Rubyx, a pioneering fintech startup based in Senegal, has secured a €400,000 loan (approximately US$440,000) from Proparco, a French development finance institution. This funding is aimed at accelerating the deployment of Rubyx’s innovative algorithmic lending solution, designed specifically for startups and microfinance institutions across Africa.
Cutting-Edge Digital Lending Platform
Rubyx has developed a state-of-the-art, cloud-based digital lending platform powered by APIs. This platform enables service providers to swiftly roll out new loan products that align with the evolving needs of modern borrowers. The flexibility and efficiency of this technology are expected to redefine the lending landscape for African startups and small businesses.
Bridge Financing for Growth
The €400,000 loan was granted through the Bridge by Digital initiative, an effort supported by Digital Africa and implemented by Proparco. This initiative offers African innovators up to 24 months of bridge financing, allowing them to scale their operations between rounds of funding. For Rubyx, this loan follows a successful seed funding round in 2022 and an extension in 2023 from Saviu Ventures. The company is now gearing up for a Series A funding round to further enhance its capabilities.
Expanding Access to Loans for African SMEs
With this injection of debt financing, Rubyx aims to fast-track the introduction of its algorithmic loan assessment and automated loan management system. This innovative system is designed to serve startups and microfinance institutions, making loan products more accessible to very small enterprises (VSEs) and small and medium-sized enterprises (SMEs) across Africa. By improving the availability of financing, Rubyx’s technology will support the growth of microfinance institutions on the continent.
Rubyx’s Vision for Financial Inclusion
Denis Moniotte, CEO and co-founder of Rubyx, expressed his gratitude for Proparco’s support, describing the loan as a validation of the company’s innovative approach to SME lending. “This backing will accelerate the development and implementation of Rubyx’s digital lending technology,” Moniotte said. He emphasized that Rubyx’s goal is to empower banks, microfinance institutions, payment providers, and fintechs with the tools to transform Africa’s fintech revolution into a catalyst for economic growth.
According to Moniotte, SMEs are the backbone of African economies, and Rubyx is committed to ensuring they have the financial support they need to thrive.
Proparco’s Commitment to Financial Inclusion
Sadio Dicko, Proparco’s regional director for West Africa, also shared his enthusiasm for Rubyx’s mission. He highlighted Rubyx’s potential to play a key role in promoting financial inclusion for African SMEs. “Rubyx’s algorithmic credit tool will allow institutions and startups to offer fast, accessible financing to a larger portion of the population, particularly those who currently lack access to credit,” Dicko noted.
By facilitating quicker and broader access to loans, Rubyx is set to have a transformative impact on the financial landscape for African businesses, helping them scale and grow.