US-based fintech startup Migo (formerly known as Mines.io) has closed a $20-million Series-B round led by Brazil-focused venture capital (VC) firm Valor Capital Group.
Migo’s platform enables companies to offer credit to their customers, augmenting traditional bank and payment card infrastructure.
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The cloud-based credit platform said in a statement today that existing investors The Rise Fund — which is managed by TPG Growth — and Velocity Capital also participated in the round.
Migo said it will use the news investment to support talent acquisition and its launch in the Brazilian market next year, as well as for continued growth in Nigeria where it has been operating.
The deal will see Valor Capital Group’s managing partner Antoine Colaço join Migo’s board of directors.
Migo, formerly Mines.io, was founded in 2014 by Kunle Olukotun and Ekechi Nwokah
The startup was founded in 2014 by a Nigerian team comprised of Stanford University professor Kunle Olukotun and Ekechi Nwokah (pictured above, centre with Olukotun right). Nwokah is a former computer scientist who previously served at Amazon Web Service’s A9.
Companies like banks, telecommunications operators and merchants integrate Migo in their apps and Migo underwrites customers to provide them with a digital account and credit line.
Some of the startup’s partners include mobile operators 9mobile, MTN, payments firms Interswitch, Flutterwave and banks like Bank of Industry and Fidelity Bank.
Customers can use this credit line to make purchases from a merchant or withdraw cash without the need for point-of-sale hardware or plastic cards.
Migo also serves under-banked customers who are not typically covered by credit bureaus. The startup claims it has underwritten more than seven million of these customers to date.
‘Particularly attractive for merchants, payment gateways’
The startup also offers a simple API so its partners can offer co-branded credit services in their own apps and websites, increasing customer engagement and serving customer segments they were not previously able to serve.
Migo pointed out that its platform is “particularly attractive” for merchants and payment gateways since it can grow merchant revenue due to increased customer purchasing power and transaction completion rate.
Nwokah, who is also Migo’s CEO, said the startup’s mission is to drive commerce around the world by injecting liquidity into the last-mile retail sector.
Migo told Ventureburn through its PR firm that its Brazil launch will likely be around the middle of next year. The startup explained in its statement that it will partner with some of the largest retail enterprises in Latin America.
Migo VP of growth Adia Sowho (pictured above, left) said the typical Silicon Valley approach of “move-fast-and-break-things” doesn’t work well in emerging markets.
“To create durable solutions, it is important to combine the audacity of cutting-edge technology with humility to the nuances of local markets,” added Sowho.
Last year the startup raised a $13-million Series-A round that was led by US impact investor The Rise Fund.
Read more: Fintech platform Mines raises $13m in Series-A round led by The Rise Fund
Featured image, left to right: Migo executive team Adia Sowho, Ekechi Nwokah, and Kunle Olukotun (Supplied)
