Finnfund invests $6 million in financial technology platform Jumo

Finnish development finance company Finnfund has invested USD 6 million in Jumo, a financial technology platform that offers mobile financial services in emerging markets across Africa and Asia. The platform targets small and medium-sized enterprises (SMEs) and low-income individuals who have been excluded from traditional banking services.

Jumo's platform utilizes mobile usage data to create financial identities for its users, enabling access to tailored financial services, including micro-loans. Finnfund's investment, structured as a debt instrument, will support Jumo's expansion in Africa and Asia and the development of new services for SMEs.

Jaakko Kangasniemi, Managing Director of Finnfund, highlighted the significance of financial inclusion. "People need to be able to access quality financial services. It gives them security, enables them to plan their lives more effectively and often gives them an opportunity to start or grow their own business," Kangasniemi stated.

Jumo has served over 5 million people and disbursed more than 20 million loans since 2014. The company employs over 300 people and operates primarily in markets such as Tanzania, Uganda, Kenya, and Pakistan. Finnfund's investment is part of a larger USD 24 million loan facility arranged by Gemcorp Capital.