Credit startup Migo has raised $20 million in its series B funding round. Brazil-based Valor capital led the investment into the five-year-old fintech.
The investment follows an earlier $13 million funding in August. Migo will use the funds to expand into Brazil, as well as support talent acquisition to grow in Nigeria.
Brazil shares similar conditions with Nigeria. Both countries have a large adult population, with an untapped need for credit, hence the expansion. “Brazil has a similarly sized problem to Nigeria in terms of the number of adults that have low access to credit,” Migo VP Adio told Quartz.
While other credit fintechs lend directly to customers, the credit startup acts as a last-mile connect to users. Migo integrates its application into platforms of existing institutions, allowing institutions to offer credit services to customers without smartphones.
The startup reaches customers on behalf of large corporations, and provides credit lines to customers.
“Our mission is to drive commerce around the world by injecting liquidity into the last-mile retail sector,” said Migo chief executive officer (CEO) Ekechi Nwokah.
“We believe the best way to achieve this goal is to build digital infrastructure to empower local enterprises that already serve millions of consumers and small businesses,” he added.
So far, Migo has reached over 7 million customers in Nigeria, enabling large operators like MTN and 9mobile reach customers. The credit startup also serves payment platforms like Flutterwave and Interswitch.