Pngme, a USA-based but Africa-focused fintech startup, has announced that it has successfully concluded raising $3 million in VC funding. The startup has said that it will be using the investment funds to further expand its offerings across Africa.
The investment round saw participation from Radical Ventures, Raptor Group, Lateral Capital, and EchoVC.
Pngme has developed a digital platform that collects user data through their customer partner’s existing mobile apps. The company says that the data collection is permission-based using a one-click data-sharing feature which then delivers real-time financial data and alerts. The startup has said that with all the consumer data it collects, it hopes to tap into Africa's growing mobile money industry.
Financial inclusion and Africa's mobile money industry
Generally speaking, most African countries struggle with providing unbanked and underserved people with adequate and affordable financial services. This has led to the growth of mobile money and mobile banking services across the continent as people seek viable solutions for their financial services needs.
Along with this has come along the concept of financial inclusion. At its core financial inclusion is about offering financial services to unbanked and underserved people at an affordable cost. However, as we've witnessed with some services across the continent, this is not always.
At fault is mostly micro-lending apps that have fees and predatory interest rates and data collection practices that are invasive.
However, Pngme is different.
Aggregating consumer financial data across Africa
According to the American fintech startup, they aggregate consumer financial data from mobile users across Africa. Once collected, Pngme then shares this data with financial services companies.
As a result, Pngme has reported 300% month-on-month growth during the fourth quarter of 2020. The startup has predicted that it expects the number of user data profiles created on its platform will reach several millions by 2022.
A big focus area for Pngme is consumers that have no data to allow financial services institutions to determine their credit profile.
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