Press Release

Mobile-based financial services company Branch has raised a Series A equity funding round of $9.6 million, as it positions itself for further growth and expansion into new markets. The funding will allow for the scaling of its operations, hiring talent in Kenya as well as expansion across East Africa in 2016.

The round was led by Andreessen Horowitz (a16z) , a prestigious US-based VC firm that has previously backed top international technology companies such as Facebook and Airbnb.  Alex Rampell, the partner who invested on behalf of the fund, commented on the deal: “The combination of smartphones, digital money, and machine learning offers an opportunity to leapfrog old-fashioned credit infrastructure, and that’s precisely what Branch is doing”. Seed investors Khosla Impact and Formation 8 also participated in the Series A round.

This week, the company disbursed its first loan in Tanzania, marking an important milestone towards its goal to expand to several African countries and disburse 1,000,000 additional loans to its customers. Already, around 150,000 people in Kenya are using the app and the Branch App enjoys a 5* rating on the Google Play Store. On average, each customer has taken out 3 loans each, ranging from KSh250 to KSh50,000.  The loans are typically approved within minutes, which makes the process smooth and stress-free for its customers.

The socially conscious technology company launched the Branch app in May 2015 to provide financial services to the rapidly expanding middle class in Kenya through its innovative Android phone application. It uses advanced data science to calculate a credit score for its customers by analysing the information on their phone such as call and SMS history. This enables Branch to meet the growing demand for credit among millions of Kenyans and disburse loans within minutes into customers’ mobile money wallets, while maintaining low default rates.

“Our product is simple. Forget about bank queues and month-long processes. Branch is like a bank in your pocket, there for you at all times”, explained Daniel Szlapak, Africa Director. “The proprietary technology we have developed means that we are able to charge lower interest rates than our competition, and reward users who repay on time with lower fees, larger loan amounts and more flexible repayment terms as they continue to use the app.”