Africa-Asia fintech Jia secures $4.3 million in seed funding – Cryptopolitan
Fintech firm Jia is opening a new chapter in blockchain-based finance and has secured a significant investment of $4.3 million in seed funding.
This early financial pledge has been led by TCG Crypto, supported by several participating entities including BlockTower, Hashed Emergent, Saison Capital and Global Coin Research.
In addition, an extra $1 million has been allocated for liquidity in the chain, which underlines investors’ confidence in Jia’s model.
Jia is making waves in Kenya and the Philippines
Jia, founded in 2020 by a team of former Tala executives including Zach Marks, Cheng Cheng, Ivan Orone and Yuting Wang, focuses on providing loans to micro and small businesses in emerging markets.
As of now, the company’s operations are primarily concentrated in Kenya and the Philippines, but with this fresh infusion of capital, the company plans to strengthen its presence in these areas and then venture into new territories in West Africa, Latin America and Asia.
Jia operates on a unique model, using decentralized finance to disburse loans to borrowers who then receive tokens after repayment. These tokens can be redeemed based on profit at a predetermined price, turning borrowers into owners with each repayment.
“Providing affordable financing for micro-enterprises is our core mission, and when these businesses repay their loans, they become part of Jia by earning token rewards,” explained Marks, CEO and co-founder of Jia.
Jia’s business model is inspired by community economic groups, particularly popular in Africa, which allow borrowers to hold shares and profit from the group. This approach has been replicated in a digital space, creating a new opportunity for micro-enterprises to access funds and build wealth.
Jia offers loans up to $5,000, significantly higher than most digital lenders and loan apps, which typically limit credit to $1,000. This allows the company to fill an existing gap in the market, catering to small businesses that require more substantial funding to grow.
“With our loans ranging from $200 to $5,000, we are competitively priced, charging about a third of the interest rate of typical fintech lenders,” Marks said.
Get in touch with local networks
A critical aspect of Jia’s strategy is integration into the apps of local partners, such as Ilara Health. This allows Jia to leverage existing networks and obtain proprietary data, helping to make more informed underwriting decisions.
With small businesses making up 90% of Africa’s businesses, the lack of access to finance is a significant barrier to growth, creating a financing gap estimated at $330 billion.
Fintech companies like Jia are poised to bridge this gap, opening up the world’s capital to MSMEs and offering a path to economic resilience.
As it continues to expand, Marks remains optimistic about the company’s role in shaping the future of finance. “Jia doesn’t just provide financing, we provide a path to financial resilience and this opportunity to build wealth in a new way that hasn’t been done before.”
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