Catalyst Fund backs three African startups
Catalyst Fund, the inclusive fintech accelerator managed by BFA Global, supported by UK Aid and JPMorgan Chase & Co. and fiscally sponsored by Rockefeller Philanthropy Advisors, today announced that six new fintech startups, from Nigeria (WellaHealth, Flex Finance); Mexico (Mango Life, Graviti); South Africa (PayMeNow) and India (KarmaLife) are joining its existing portfolio of 31 companies and receiving £80,000 in grant capital, bespoke and expert-led venture building support for six months and 1:1 connections with investors and corporate innovators that can help them scale. All startups in the latest cohort are addressing critical challenges in times of Covid-19, in emerging markets.
“We believe we are facing a catalytic moment during which there is an opportunity to use technology to help low-income consumers and small businesses recover from the impact of Covid-19 and build greater financial resilience for the future,” said Maelis Carraro, Catalyst Fund director. “If we support the right companies now – from those finding new ways to provide affordable health and life insurance, to tools that can digitise micro and small businesses and provide new income opportunities, to those that can enable affordable access to essential services – these innovations can grow to play a critical role in improving financial health globally.”
More on the African startups:
– WellaHealth: Nigeria-based platform offering affordable healthcare coverage to protect families from the financial shock that comes from unexpected health emergencies, including hospital cash during Covid-19
– Flex Finance: Nigeria-based financial management tool that enables micro- and small businesses to digitise operations and establish a digital footprint that can enable them to improve operations, operate digitally, and become eligible for credit lines and other financial services
– PayMeNow: South Africa-based financial wellness app that allows low-income workers to access part of their earned wages before payday, providing access to much-needed liquidity while empowering them to avoid the costs and dangers of debt
“The Covid-19 crisis has negatively impacted the health and financial stability of underserved workers and small businesses across the world,” said Colleen Briggs, head of financial health and community development, JPMorgan Chase. “Helping ensure that people in hard-hit communities have access to fintech tools that can improve their financial health is a key prerequisite for an inclusive economic recovery.”
Kim Bromley, head of financial services, DFID said: “Covid-19 has highlighted fintech’s vital role in widening access to financial services to the most vulnerable people. Catalyst Fund support will help fintech companies improve their resilience to future crises enabling them to provide critical solutions to low-income customers through the Covid-19 crisis and beyond.”
Each startup in this cohort was sourced and approved by Catalyst Fund’s Investor Advisory Committee (IAC), comprising experienced fintech and emerging markets investors, including: Anthemis, Quona Capital, 500 Startups, Flourish Ventures, Accion Venture Lab and Gray Ghost Ventures.
In addition to supporting portfolio companies, the Catalyst Fund team is focused on strengthening local innovation ecosystems, including global and local investors and corporate innovators, through establishing “circles”, or communities, of peer-investors and corporate innovators. Members range from Microtraction and Novastar Ventures, to Savannah Fund and VestedWorld. These firms share Catalyst Fund’s mission to support the growth of inclusive fintech startups in emerging markets to expand access to accessible, affordable, and appropriate products to the underserved.
In January, Catalyst Fund announced $15 million in additional funding from UK aid and JPMorgan Chase & Co., to accelerate 30 new inclusive fintech startups across Kenya, Nigeria, South Africa, Mexico, and India who are building affordable, appropriate and accessible solutions for underserved customers, by 2022. To date, Catalyst Fund has accelerated 31 portfolio companies that have gone on to raise more than $64 million in follow-on funding and reach over 2 million low-income customers.
Reach Africa’s private equity community by publishing a Showcase Article on Africa Private Equity News. Contact us at editor@africaprivateequitynews.com for our rate card and more information.