Migo, a Nigerian fintech company, announced that it has received invitations from major retailers to begin activities in Brazil. The company provides loans to low-income people and also to the unbanked population. The company has 1 million clients and has already made about $3 million in loans.
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Low-income loans with the fintech company Migo
According to the president of Migo, Ekechi Nwokah, invitations have been issued for over a year. “It doesn’t matter if the client has a bank account or not. Our company is ready to serve classes C, D and E,” he said.
On Tuesday, March 3rd, Migo revealed that it had received an investment of $20 million to begin activities in Brazil. The financing round was led by Valor Capital Group and counted with the participation of Africinvest, Cathay Innovation, The Rise Fund, and Velocity Capital.
This fund is focused on innovative businesses in Brazil and has already invested in startups such as Guiabolso, Gympass, and CargoX. With the partnership, the company will bet on small shopkeepers who make purchases in São Paulo but have no access to credits or banks. In addition, interested parties will not have to worry about Pozitive Registration.
How does Migo work?
As it is a fintech company, all work operations offered by Migo are digital – without queues and bureaucracy. The company’s job is to train local companies so that they can offer credit. This is done through a system integrated with the partner’s application or website. As for the loan service, users can make loan applications through the startup platform itself.
It is also possible to request the resource directly with the partner company. Initially, the interested party must register a telephone number in order to access the offers. Then you must enter your bank details to receive the money, which is released in a few minutes. Payment can be made online or through ATMs of partner banks.
Migo’s main focus is to develop the banks’ traditional infrastructure
The company is focused on increasing the traditional infrastructure of banks and cards. This is done, so that more and more people have access to credit lines, without the need for point of sale hardware or plastic cards.
“Migo is using the data of the partner establishment itself and determines the credit line. Instead of using a card for the transaction, the company is using, for example, this retailer’s application. If Migo approves, then the amount from the bank that lends the money is moved directly to the merchant’s account at that or another bank. Migo can’t offer $2,000 (BRL 10,000) in credit, but can offer $100 (BRL 500),” said Ekechi.
More information about the Migo fintech company
Founded in 2013 in Nigeria, the fintech company Migo, formerly Mines.io, has its own platform that operates in the cloud. The system allows banks and companies to offer credit to their customers in a practical and fully digital way.
“The challenge of global social inequality is driven by the lack of access to credit. If you look at the middle class in developed countries, it is largely based on access to credit,” said Nwokah.
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First published in EDITAL CONCURSOS BRASIL, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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