Quick Read: SC Ventures, the innovation and fintech investment arm of Standard Chartered, has entered into strategic shareholder and technology collaboration agreements with Yabx Technologies, a Netherlands-based subsidiary of the Tech Mahindra group. This partnership marks their joint investment in Furaha, a lending platform designed to enhance financial accessibility across sub-Saharan Africa.
Investment Details and Objectives SC Ventures has committed $7 million to the initiative, while Yabx BV has contributed through technology transfer, culminating in a total investment of $10 million in Furaha. Incubated by SC Ventures and co-founded by Yustus Aribariho and Ian Fernandes, Furaha is set to revolutionize access to finance, with an initial focus on education financing. The platform aims to address critical financial barriers for families seeking quality education for their children.
Furaha’s Headquarters and Expansion Plans Headquartered in the Dubai International Financial Centre (DIFC) in the UAE, Furaha is gearing up to expand its services across African markets. Uganda will serve as the platform’s inaugural market, with plans to extend operations to other countries in the region.
Leadership Perspectives on the Partnership
Alex Manson, CEO of SC Ventures, stated:
“We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access. This collaboration will enhance purpose-driven financing in Africa and supports our mission to transform the banking landscape.”
Rajat Dayal, CEO of Yabx, remarked:
“This collaboration with SC Ventures is a pivotal moment for Yabx. It marks our entry into the education financing sector. The long-term impact of a partnership like this is substantial, and we’re excited to work with Furaha to positively influence educational outcomes in Uganda and other African nations in the months ahead.”
The Urgent Need for Education Financing in Africa Africa has the youngest population globally, with over 600 million children under the age of 18. Education financing is a pressing issue, as many families struggle with liquidity and lack access to short-term borrowing options, such as credit cards or affordable digital loans. These challenges often lead to delayed or unpaid school fees, which can disrupt children’s education and limit their future opportunities. The issue is particularly acute for families earning less than $500 per month.
How Furaha Addresses Financial Barriers Furaha is creating a robust ecosystem for credit scoring and enabling commercial banks to provide affordable credit for education financing. By leveraging Yabx’s AI-driven alternative lending platform and SC Ventures’ expertise in banking and risk management, Furaha aims to lower the costs associated with purpose-driven lending products and expand financial inclusion for underserved communities.
Initial Success and Future Plans In Uganda, Furaha has already begun offering loan products in collaboration with Opportunity Bank, SchPay, and MTN MoMo. These partnerships highlight the platform’s ability to address critical gaps in education financing. Furaha plans to scale its operations to additional African countries, aiming to reach more families in need.
Broader Impacts and Future Vision
Mohit Joshi, CEO and Managing Director of Tech Mahindra, commented:
“The power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity, particularly in regions like Africa. This strategic partnership aims to make financial solutions more inclusive and impactful. It’s an exciting beginning, and we look forward to collaborating with SC Ventures on many initiatives that redefine financial empowerment and drive global innovation.”
Furaha’s innovative approach represents a significant step toward addressing the financial barriers to education, ultimately fostering a brighter future for millions of African children and their communities.
