A fintech company established in 2020 received a boost after raising Ksh376 million from five Kenyan and international investors to enable it to scale and continue making inroads in other African countries.
In a statement shared on Tuesday, February 14 by Power Financial Wellness founder and Chief Executive Officer (CEO)Brian Dempsey, the company will use the money to achieve its growth objectives.
The firm which had already onboarded 75 companies in Kenya and given access to over 40,000 workers, was built as a solution to trends in the micro-lending space that left many Kenyans struggling with the management of their finances.
Dempsey stated that the establishment and continued development of Power Financial Wellness was informed by the vision to help workers access affordable and appropriate financial services.
The startup provided short and long-term loans, investment opportunities, and insurance products to its partner employees.
“During my time at the micro-finance institutions, I noticed that close to 65% of workers that banked with us would spend all of their money in the first five days of the month.
"They would then access expensive microcredit from loan apps, leaving them struggling in terms of financial health," Dempsey explained in a statement.
Explaining how the start-up operated, the CEO stated that, unlike other microlenders that used credit bureaus to make lending decisions, Power Financial Wellness lent money to employees and contractors of companies on their platform, a move that lowered the risk of defaults.
“When we connect to a company, we already know how much the employees make and how long they've been there.
“We then use all of that information to provide workers with a unique loan amount, interest rate, and loan tenure,” added Dempsey.
Dempsey further revealed that the company aimed to reach 250 companies in Kenya and had already disbursed over Ksh187 million in loans since it was launched.
Moreover, he stated that the startup intended to continue collaborating with banks, leveraging technology to provide a new range of services to employees.
