Kenyan fintech startup Alternative Circle has raised US$1.1 million in funding from international credit risk management company Creditinfo Group to help it achieve a wider geographical footprint.
Alternative Circle will in July launch its mobile-based credit facility app Shika, which allows users to access mobile loans and uses a decision engine to identify creditworthy borrowers.
The funding arrangement with Creditinfo will see the startup benefit from the larger firms expertise in classic and alternative credit risk management.
“Partnering with Creditinfo Group will not only redefine the way risk is evaluated in Kenya and the world but it will also bring on to the credit-ecosystem several SMEs that can now achieve their potential,” said Kevin Mutiso, chief executive officer (CEO) of Alternative Circle.
Creditinfo CEO and founder Reynir Grétarsson said his company was being proactive in funding alternative ways to create data on consumers, having seen the turn the credit risk management industry has been taking over the last few years.
“Alternative Circle has the stamina to succeed in this competitive market, and we look forward to winning new markets with them,” he said.
“The acquisition of Coremetrix last year, our psychometrics company, enabled Creditinfo to win new markets fast. The strategic partnership with Alternative Circle is expected to further enable Creditinfo to gain extremely valuable consumer data that was not available in the market before.”
The seed capital investment and a team of professionals working in the field of scoring and decision automation services will initially facilitate Alternative Circle in building a modern and agile mobile-based microloan platform.
