Purpose-driven financing: SC Ventures and Yabx Join Forces to Launch Furaha with $10 Million Investment

Purpose-driven financing: SC Ventures and Yabx Join Forces to Launch Furaha with $10 Million Investment

On the left: Mohit Joshi, CEO, Tech Mahindra | On the right: Alex Manson, CEO, Standard Chartered Ventures

SC Ventures and Yabx Technologies have announced a significant investment of $10 million to establish Furaha, a new lending platform aimed at enhancing education financing across sub-Saharan Africa.

This initiative is set to address the financial barriers faced by families in accessing quality education, particularly in Uganda, where the platform will initially launch.

In a nutshell

  • Investment Details: SC Ventures contributed $7 million, while Yabx provided technology transfer, culminating in a total investment of $10 million.
  • Focus on Education: Furaha aims to provide accessible financing solutions for education, targeting families with limited financial resources.
  • Partnership Goals: The collaboration seeks to enhance financial inclusion and create a sustainable ecosystem for education financing in Africa.

Background of the investment

SC Ventures, the fintech investment arm of Standard Chartered, has partnered with Yabx Technologies, a subsidiary of Tech Mahindra, to formalise their joint investment in Furaha.

The platform is designed to leverage advanced technology and innovative lending practices to make finance more accessible in underserved regions.

The mission of Furaha

Furaha, which means "happiness" in Swahili, is focused on bridging the education financing gap in Africa.

With over 600 million children under the age of 18 in the region, the need for affordable education financing is critical.

The platform aims to alleviate the financial burden on families, enabling them to pay school fees on time and ensuring that children can continue their education without interruption.

How Furaha works

Furaha will utilise a data-driven approach to create credit scoring frameworks based on educational institution data. This allows commercial banks to offer tailored financing solutions to families, particularly those earning less than $500 a month.

The platform will initially roll out its services in Uganda, collaborating with local partners such as Opportunity Bank, SchPay, and MTN MoMo.

The impact of the partnership

The partnership between SC Ventures and Yabx is expected to have a transformative impact on education financing in Africa. By combining SC Ventures' expertise in banking and risk management with Yabx's innovative technology, Furaha aims to reduce the costs associated with lending and broaden access to financial products for underserved communities.

Future plans: beyond Uganda

Furaha plans to expand its offerings beyond Uganda to other countries in sub-Saharan Africa, addressing the pressing need for education financing across the continent.

The initiative is poised to create a rich ecosystem of data for credit scoring, enabling more families to access affordable credit and improve educational outcomes for their children.