Centum helps Branch raise Sh500 million

Branch head of global operations Daniel Szlapak. FILE PHOTO | NMG

What you need to know:

  • Branch International said on Monday that the fresh capital — its third issued commercial paper in the Kenyan market since 2017 — will help grow its loan book.
  • Established in 2015, Branch has reported clocking its ten millionth customer and has locally disbursed more than Sh25 billion to date.
  • Besides Branch, there are nearly a dozen other major players in the market that issue short-term loans via mobile money.

Centum Investments capital-raising advisory firm Barium Capital has helped San Francisco-based mobile loans company Branch International raise Sh500 million for local on-lending.

Branch said on Monday that the fresh capital — its third issued commercial paper in the Kenyan market since 2017 — will help grow its loan book.

“This is the third time (Branch) has issued commercial paper, following a Sh350 million issuance in 2018 and a Sh200 million issuance in 2017,” said Branch.

The firm said the latest investment will be used to continue expansion of its services.

“It’s very exciting to be serving millions of Kenyans and providing them with access to essential financial services,” said Branch head of global operations Daniel Szlapak.

“The huge growth and success in the Kenya market has positioned the company for strong global expansion.

Established in 2015, Branch has reported clocking its ten millionth loan and has locally disbursed more than Sh25 billion to date.

Besides Branch, there are nearly a dozen other major players in the market that issue short-term loans via mobile money.

They include commercial bank platforms such as M-Shwari, M-Co-op Cash, KCB M-Pesa, Equitel and Barclay’s Timiza. Non bank-backed mobile lending apps include Saida and Mombo Mobile, Tala, with Okash by Opera software being the latest entrant.

In April last year mobile lending firm Tala raised Sh6.5 billion in a fresh round of investment funding.

Kenyans turn to the digital micro-loans mainly for short-term working capital owing to their convenience.

Welcome!

You're all set to enjoy unlimited Prime content.