Standard Chartered’s innovation, fintech investment, and ventures arm, along with Yabx Technologies, a Tech Mahindra group company, have established a series of agreements to formalize their joint investment in Furaha.
Furaha aims to make finance more accessible across sub-Saharan Africa, starting with offerings in the education financing sector. The platform leverages Yabx’s AI-driven alternative lending capabilities and SC Ventures’ expertise in banking and risk management, which helps reduce the cost of providing lending products and enhances financial inclusion for underserved segments in Africa.
Africa is home to the youngest demographics globally, with over 600 million children under the age of 18. One of the most significant expenses for families is education. Many parents struggle with liquidity or lack access to short-term borrowing options, such as credit cards or affordable digital loans, often facing difficulties paying school fees on time. Delays or unpaid fees can hinder children’s ability to continue or complete their education, affecting their future and the development of their communities and countries. This issue is particularly severe for families with monthly incomes below $500.
Furaha provides a solution for parents and schools by creating a data ecosystem for credit scoring that enables commercial banks to offer affordable credit for education financing. The company is headquartered in the Dubai International Financial Centre (DIFC) and plans to extend its offerings to local markets in Africa, beginning with Uganda. Furaha has already started providing loan products in Uganda in collaboration with partners like Opportunity Bank, SchPay, and MTN MoMo, with plans to expand into other countries across Africa.
Alex Manson, CEO of SC Ventures, stated: “We are pleased to collaborate with like-minded innovators like Yabx and Tech Mahindra, who share our vision of enhancing financial inclusion and access. This partnership will contribute to advancing purpose-driven financing in Africa and supports our efforts to transform the banking landscape.”
Mohit Joshi, CEO and Managing Director of Tech Mahindra, commented: “The transformative potential of purpose-driven financing is significant, particularly in regions like Africa, as it addresses gaps in access and opportunity. This strategic partnership aims to make financial solutions more inclusive and impactful. We are excited about this beginning and look forward to working with SC Ventures on similar initiatives that redefine financial empowerment and drive innovation on a global scale.”
Rajat Dayal, CEO of Yabx, remarked: “This partnership with SC Ventures is a significant milestone for Yabx, marking our initial foray into the education financing space. The long-term impact of this collaboration is substantial, and we look forward to working with Furaha to enhance educational outcomes in Uganda and other African countries in the coming months.”