Furaha Get USD 10 M Backing from SC Ventures and Yabx to Transform Education Financing in Africa

By  |  January 28, 2025

Furaha, a lending platform headquartered at Dubai International Financial Centre (DIFC), has secured USD 10 M in funding to revolutionize education financing across sub-Saharan Africa.

The investment, led by SC Ventures and Yabx Technologies, aims to tackle the pressing financial challenges that many African families face in accessing quality education.

The USD 10 M investment includes USD 7 M from SC Ventures, the innovation and fintech investment arm of Standard Chartered, while Yabx, a Tech Mahindra group company, contributed through technology transfer.

By combining Yabx’s AI-driven lending technology with SC Ventures’ extensive banking and risk management expertise, Furaha aims to reduce the cost of delivering lending products and widen financial inclusion for underserved communities. This will target Sub-Saharan Africa, where many families struggle to afford quality education for their children.

With over 600 million children under 18, Africa faces a significant challenge in providing affordable education. This is especially true for parents earning less than USD 500 per month, who struggle to pay school fees on time due to limited access to credit. These financial barriers often result in children dropping out of school or delaying their education, negatively impacting their future prospects and the development of communities.

Furaha seeks to change this by creating a data-driven credit ecosystem that empowers banks to offer affordable education loans. By leveraging advanced credit scoring techniques, the platform ensures that commercial banks can extend affordable loans tailored specifically for education. This reduces the financial strain on families while enabling timely payment of school fees.

This funding will support the platform’s expansion across African markets, starting with Uganda, where it has already partnered with Opportunity Bank, SchPay, and MTN MoMo to provide accessible education loans.

“We are glad to partner with like-minded innovators like Yabx and Tech Mahindra, who share our vision of increasing financial inclusion and access. This collaboration will enhance purpose-driven financing in Africa and support our work to rewire the DNA of banking,” said Alex Manson, CEO of SC Ventures.

Mohit Joshi, CEO and Managing Director of Tech Mahindra, highlighted the transformative potential of the initiative. “An education financing platform like Furaha can positively impact families across Africa by reducing the cost of delivering lending products and widening financial inclusion for underserved communities. This is just the beginning, and we look forward to collaborating with SC Ventures on more initiatives that redefine financial empowerment and drive innovation globally.”

Rajat Dayal, CEO of Yabx, described the partnership as a pivotal moment for the company. “This partnership with SC Ventures is a big moment for Yabx. It marks our first step into the education financing space. The long-term impact is huge, and we’re excited to work with Furaha as they positively impact education outcomes in Uganda and other African countries in the coming months.”

Furaha’s solution is especially timely as many African parents lack access to short-term borrowing options, such as credit cards or digital loans. By partnering with key financial players and leveraging technology to lower lending costs, Furaha offers a much-needed solution for parents and schools alike.

With plans to scale operations across the continent, Furaha is poised to make a meaningful impact by fostering financial inclusion and ensuring that more African children have access to the education they deserve.

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