Microfinancing startup Musoni Services, has received an investment round from early stage growth capital fund Goodwell Investments.
Headquartered in The Netherlands, Musoni Services provides cloud-based core banking software for microfinance institutions and describes itself as “one of the first companies to leverage cloud computing and Software-as-a-Service (SaaS) to dramatically change the landscape of financial services in Africa”.
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By doing so, it claims to be able to cut the cost of the banking systems which are essential for the efficiency and cost structure of every microfinance institution (MFI) around the globe. This, it says, allows the company to support MFIs along every step of the technology journey, starting with improving data quality and business processes; before moving on to SMS, mobile money, tablets and beyond.
According to a press release sent to Ventureburn, the company’s technology platform integrates seamlessly with mobile money technology, uses tablets and SMS messages for field based data capture and direct communication with clients. It also takes advantage of the rise in internet connectivity to reduce hosting costs and headaches for MFIs.
Musoni CEO Cameron Goldie-Scot says that Goodwell is “an ideal investor for Musoni. The funds and relationships from Goodwell will be used to drive expansion into new markets and continue the company’s rapid expansion.”
The investment sees Goodwell acquire a “significant minority” stake in Musoni.
“Our mission,” says Els Boerhof, partner at Goodwell Investments, “is to provide more people with access to affordable and better quality basic goods and services, including financial services. Unfortunately most MFIs can hardly afford, maintain or develop their IT systems. Musoni uses technology that supports MFIs in reducing their costs while improving efficiency and expanding their reach into rural areas.”
“It is the continuous drive for improvement,” he adds, “that makes Musoni stand out from traditional software providers that typically license a base version of a system, and then charge clients for any additional development.”
At the end of 2015 the Musoni system was licensed to thirty-nine MFIs across eight African countries and one MFI in Myanmar. Musoni Services aims to roll out its system to MFIs, asset-financiers and SACCOs (Savings and Credit Co-operative) across the world; with a particular focus on expanding into West Africa, starting with Ghana and Nigeria. Musoni’s primary target is MFIs serving between 10,000 and 50,000 clients.
