Kenyan fintech Power raises $3M in seed funding
Power, Kenyan fintech has secured a $3 million seed funding in a round led by DOB Equity as it plans to expand its offerings in Kenya and make an entry into Zambia.
Co-founded by Brian Dempsey and Chandra Singh in 2020, Power provides partner employees access to financial tools such as short and long-term loans, investment opportunities, and insurance products.
Unlike other micro lenders who rely on credit reference bureaus to make lending decisions, it only lends to employees and contractors (gig workers) of companies they have on-boarded on their platform, lowering the risk of defaults, and ensuring that borrowers access funds that they can pay back.
Power has a portfolio of over 75 companies in Kenya, with access to over 40,000 workers, out of which it’s been able to serve 15%. The company has also disbursed over $1.5 million in loans since its launch and plans to reach 250 companies in Kenya.
The fintech is now scaling in Kenya and making an expansion into Zambia, where it plans to be a technology partner instead of an active lender and has signed a deal with a Southern African bank to kick-start its latest strategy, Dempsey told TechCrunch.
Power also says it is eyeing expansion to at least ten markets in Africa over the next three years.
