Jia raises $4.3 million in seed funding to bridge Africa's small business financing gap
According to this report, small enterprises constitute 90% of Africa's businesses, but they encounter a significant financing deficit amounting to $330 billion. To address this financial gap, Blockchain-based fintech startup Jia has successfully raised $4.3 million in seed funding, along with an additional $1 million commitment for on-chain liquidity.
Jia offers loans to micro and small businesses, providing borrowers with tokens upon repayment, which can be redeemed based on Jia's profits. The startup aims to offer affordable financing to micro-businesses, transforming borrowers into owners through token rewards.
Jia claims to provide loans of up to $5,000 to small businesses filling the gap currently left by digital lenders and loan apps that don’t offer credit of more than $1,000. Jia's loan repayment period is based on the borrower and can extend up to six months, and attract about 2% to 6% interest per month, depending on the borrower’s profile.
The fintech has also launched its first on-chain pool with Huma Finance, an income-backed decentralized finance protocol. Jia which was founded by former executives from Tala, plans to utilize the funding to expand its operations in Kenya and the Philippines and explore new markets in West Africa, Latin America, and Asia.
The funding round was led by TCG Crypto, with participation from investors including BlockTower, Hashed Emergent, Saison Capital, and Global Coin Research, as well as notable angel investors such as Packy McCormick, Anand Iyer, Jared Hecht, and Rory Eakin.
