OneFi, a Nigerian fintech startup founded in 2012 by its Chief Executive Officer, Chijoke Dozie, has secured a $5million debt facility from Lendable, a New York-based lending platform.
In 2016, OneFi launched Paylater, an online lending platform, which also helps users transfer money and pay bills.
Since its launch, OneFi has disbursed over US$60 million across 750,000 loans. It approves over 1,500 loans daily, with an average size of US$80 per loan.
This is Lendable’s first deal with a Nigerian firm.
Lendable’s Chief Executive Officer, Daniel Goldfarb, is excited about its partnership with OneFi, noting that the deal will grow the presence of Lendable in Nigeria.
OneFi will use the debt facility to disburse more loans to Paylater’s customers, through new products with which it plans to double its size within Nigeria before entering new markets in 2019.
According to Dozie, the deal with Lendable comes two months after it secured a “BB rating with stable outlook” from Global Credit Rating Co, which made it the first finance technology firm to secure this rating.
Dozie adds that the transaction with Lendable is the firm’s first internationally-backed commercial debt, and marks an important stage in the company’s development as it looks to serve the “next billion”.
Says Dozie: “As we transition into a full service digital bank, this financing will allow us to execute on a number of new products. This includes our partnership with Visa, whereby we will be providing credit via QR codes at supermarkets, clinics and on public transport in H1 2019.”
Crunchbase, a business intelligence platform, estimates that, excluding the funds from Lendable, OneFi has raised $10.8 million across three funding rounds.