- Kenyan fintech startup, Power, has closed $3 million in seed funding to scale in Kenya.
- DOB Equity led the round with participation from QED Investors, Quona Capital, Zephyr Acorn, and Norrsken Impact Accelerator.
- Power also intends to expand into at least ten African markets over the next three years.
Launched by Brian Dempsey and Chandra Singh in 2020, Power Financial Wellness helps employees access financial services.
The startup provides short and long-term loans, investment opportunities, and insurance products to partner employees.
Power claims it only lends to employees and contractors (gig workers) of companies on its platform, reducing the risk of default and ensuring borrowers have access to funds they can repay.
Employees at Power have access to long-term loans based on their earnings that are available for 2-3% interest per month and can access a portion of them in advance. HR can access, approve, or reject employee loan requests using the platform.
Per the company, it connects to the credit bureau in real time to pull information on other facilities it might have in the market. And it says it uses all that information to provide an amount, interest rate, and loan tenure.
Additionally, people can buy different insurance products, pay for them over a long period with the same interest, and gain access to partner company packages that demand lump-sum payments.
Since its launch, the company has disbursed loans totalling more than $1.5 million. It intends to contact 250 businesses in Kenya.
So far, it has onboarded 75 Kenyan companies, giving it access to over 40,000 workers, 15% of whom it has been able to serve.
Besides, Power says it has expanded to Zambia, where it plans to become a technology partner rather than an active lender. Also, it has partnered with First Capital Bank to launch its most recent strategy.
The company claims it has bank partnerships in Zimbabwe, Zambia, Malawi, Mozambique, and Botswana. It also plans to continue collaborating with banks to offer a new range of services.