SC Ventures, the innovation and fintech investment arm of Standard Chartered, and Yabx Technologies, a company under Tech Mahindra, have announced a $10 million investment to establish Furaha, a new financial platform aimed at expanding access to purpose-driven loans across Africa. The new entity will focus on financing for education and other social impact-driven lending initiatives.
Furaha will operate from Dubai International Financial Centre (DIFC) and extend its services to Africa, starting with Uganda as its first market. The initiative brings together SC Ventures’ global expertise in financial risk management and Yabx’s AI-powered lending technology, providing affordable credit to underserved communities. This initiative builds on Standard Chartered’s broader financial inclusion efforts, including the Women in Tech program that empowers female entrepreneurs with mentorship, training, and seed capital.
Bridging the Financing Gap in Education
Africa is home to over 600 million children under the age of 18, making education one of the most critical factors in the continent’s development. However, many families struggle to afford quality education, particularly those earning under $500 per month who lack access to short-term credit solutions such as credit cards or digital loans.
Furaha aims to address this challenge by creating an education financing ecosystem that enables commercial banks to extend affordable credit to parents and schools. The company is already operational in Uganda, where it has partnered with:
- Opportunity Bank
- SchPay (a school payments platform)
- MTN MoMo (a mobile money service)
By leveraging alternative credit scoring models, Furaha will assess borrowers based on diverse data points to ensure that financing is accessible to those who need it most. Similar to how Standard Chartered partnered with Village Capital to support women-led startups, the Furaha platform aims to bridge the financing gap in education and purpose-driven lending.
A Strategic Partnership for Financial Inclusion
The investment includes $7 million from SC Ventures, while Yabx contributes via technology transfer, making up the total $10 million funding package. The collaboration reflects a shared vision of financial inclusion, as both entities focus on expanding digital lending infrastructure to bridge Africa’s financing gap.
Speaking about the partnership, Alex Manson, CEO of SC Ventures, stated:
“We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access. The partnership will help enhance purpose-driven financing in Africa and supports our work to rewire the DNA in banking.”
Mohit Joshi, CEO and Managing Director of Tech Mahindra, echoed this sentiment:
“The transformative power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity, particularly in regions like Africa. This strategic partnership aims to make financial solutions more inclusive and impactful.”
This approach mirrors Standard Chartered’s existing digital finance solutions, such as Branch and Solv’s partnership aimed at extending loans to Kenyan MSMEs.
AI-Powered Lending for Greater Accessibility
Furaha utilizes Yabx’s AI-driven lending platform, which incorporates alternative credit scoring models to reduce reliance on traditional financial history. This enables:
- Faster loan approvals
- Lower lending costs
- A broader reach to financially underserved communities
The technology-first approach is expected to scale lending across multiple African countries beyond Uganda in the coming months.
Expanding Furaha’s Impact Beyond Uganda
Furaha has already begun offering education loans in Uganda, with plans for rapid expansion to other African markets. Future offerings could extend beyond education financing to support women entrepreneurs, small businesses, and other financial inclusion initiatives.
Speaking on the broader vision, Rajat Dayal, CEO of Yabx, stated:
“This partnership with SC Ventures is a big moment for Yabx. It marks our first step into the education financing space. The long-term impact of a partnership like this is huge, and we’re excited to work with Furaha as they positively impact education outcomes in Uganda and other African countries in the coming months.”
As Furaha expands into new African markets, its success will depend on:
- Scaling partnerships with financial institutions and mobile money providers
- Improving AI-driven credit scoring models for broader accessibility
- Ensuring regulatory compliance in each market it enters
As Furaha scales its impact, it aligns with Standard Chartered’s broader push towards financial accessibility, much like the expansion of SC Juza, which provides digital loans to underserved communities.
A Long-Term Commitment to Financial Inclusion
SC Ventures and Yabx’s investment in Furaha aligns with ongoing global efforts to improve access to education financing and financial inclusion across emerging markets. By combining cutting-edge AI technology, digital lending models, and strong financial backing, Furaha is poised to become a key player in purpose-driven financing in Africa.
What’s Next?
The initiative represents a significant milestone in the future of digital lending in Africa, potentially reshaping access to education financing for millions of families. For more updates on Furaha’s expansion and impact, visit www.scventures.io or follow SC Ventures and Yabx on LinkedIn.
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