Flourish Ventures, a venture company of The Omidyar Group, the partners of DST Global, and existing seed investors Newfund, Speedinvest, and Le Studio VC, have invested €10m in FairMoney in a Series A investment round.

FairMoney was founded in 2017 by CEO Laurin Hainy, former CEO of Venture Builder and VC fund Le Studio VC, alongside CTO Matthieu Gendreau, ex-lead developer of PriceMatch and CPO Nicolas Berthozat.

FairMoney started as a mobile app that uses alternative smartphone data to underwrite microcredit in Nigeria.

Today, more than 200,000 customers use FairMoney, with a majority using the platform to finance their small business needs. Alongside the investment round, FairMoney has also introduced the in-app payment function to its users, which allows them to top up their phone subscriptions, buy mobile data, pay electricity or internet bills, among others, already facilitating more than 400 payments daily.

Other features, such as digital wallet and saving account are scheduled to launch soon.

“Our vision is to build a holistic financial platform for underserved customers in emerging markets. We want to do that by offering an easy-to-use product to our customers and become a financial one-stop-shop for them,” said Laurin Hainy, CEO of FairMoney.

“We started with credit for small business owners and individuals, and we are expanding our services rapidly. Think digital bank for emerging market consumers.”

Funds raised in this round will be used to scale the company’s engineering team in order to develop a fully-fledged mobile banking offering in Nigeria and beyond.

According to the World Bank, more than two billion people globally have limited access to financial services and working capital.

Access to loans for this segment is extremely limited given that they do not have a credit score.

FairMoney’s approach to underwriting credit is based on a proprietary algorithm that applies machine learning techniques to smartphone data.

“After backing digital banks in the US, UK, Latin America and South Asia, we are excited to support one of the first companies to bring this model to Africa. We believe that customers will ask a lot more of their banks–to be relevant, banks will have to move from service providers to become financial mentors for their customers,” said Ameya Upadhyay, Principal at Flourish and FairMoney’s new board member.

“That’s where we see a massive global opportunity for FairMoney, which combines a top-notch banking infrastructure with a culture of obsessive customer focus.”

For decades, incumbent banks have only lent to large enterprise clients and left a big part of the population underserved.

New technologies have created the opportunity to include these consumers into the formal financial system for the first time.

Use cases for the FairMoney loan product are diverse–more than 60% of customers use the loans as working capital to run small- and micro-businesses.

The automatic underwriting process enables FairMoney to score clients and disburse funds within five minutes.