Mamamoni, a Nigerian fintech social enterprise, has secured €250,000 in funding from the Challenge For Youth Employment (CFYE).
The CFYE, backed by the Netherlands Ministry of Foreign Affairs, has collaborated with entities like SheLeads Africa, ReelFruit, Utiva, Stutern, and Co-Creation Hub in Nigeria, boasting a portfolio of over 30 businesses across Africa.
The funding, spread over two years and contingent on Mamamoni meeting specific milestones, will facilitate the expansion of its female agent network. VFD Microfinance Bank will play a pivotal role in this endeavor.
Founded in 2014 by Nkem Okocha, Mamamoni aims to empower low-income Nigerian women with financial independence. Initially offering microloans sourced from individuals and investment clubs, Mamamoni shifted to collaborating with financial partners due to overwhelming loan demand.
In 2022, it adopted an agency banking model, boasting 500 female agents processing over ₦3 billion monthly across ten states. Okocha emphasized the importance of female-only agents to accommodate cultural and religious sensitivities, ensuring financial access for marginalized communities.
Agency banking has significantly bolstered Nigeria’s financial inclusion, with nearly 2 million agents enlisted nationwide. However, the cost of Point of Sale (PoS) terminals remains a challenge. Mamamoni addresses this by providing terminals after a caution fee payment, initially offering them for free to early agents.
Despite funding challenges and the high-risk market served, Mamamoni remains committed to its social mission, impacting over 50,000 women to date. The fintech plans to expand its agent network to over 2,000 women by 2024 and aims to onboard 500,000 women with its Herpay payments app, offering lower transaction fees.
The Mamamoni Foundation supplements its efforts by providing training and health insurance to agents and clients. Okocha acknowledges the need for patient capital, citing the social enterprise model’s inherent challenges in attracting investors.
Mamamoni’s story underscores its dedication to empowering women and driving financial inclusion in Nigeria, with ambitious plans for future growth and impact.
Source: Techpoint