FMO, the Dutch Development Bank, has financed Umati Capital Kenya, a Fintech company that supports small, and medium-sized enterprises in the food and agri value chain. FMO’s EUR 300,000 convertible facility, provided to Umati in local currency, will enable the start-up company to grow their business and loan portfolio. The funding comes from MASSIF, the financial inclusion fund FMO manages on behalf of the Dutch government.
“It is great to support the innovative, technology driven business model of Umati Capital” said Linda Broekhuizen, Chief Investment Officer of FMO. “This transaction results from FMO’s efforts to drive financial inclusion by cooperating with Fintech companies. On the one hand, FMO is open to financing Fintech companies directly. On the other hand, we are eager to connect Fintech companies to our existing banking and microfinance clients.”
“We are excited to partner with FMO to advance the growth of our technology-driven lending into food and agri value chains in Kenya” said Ivan Mbowa, Co-founder & CEO of Umati. “This transaction will not only help us meet strong demand from our target market but we believe it will ultimately catalyse further capital from similar development finance institutions which is critical for an early-stage financier such as Umati.”
About FMO
FMO is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 9.3 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
About Umati Capital (Kenya) Limited
Umati Capital is an early stage non-bank financial institution based in Kenya that aims to revolutionise access to finance in agricultural value chains through the consistent and innovative use of technology. Launched in July 2013, Umati is a NBFI combining a unique blend of trade finance with technology as the primary distribution channel. They are currently focused on serving agri-business supply chains, retailer value chains and fast moving consumer goods manufacturers. They leverage proprietary technology to provide branchless financial services to small scale suppliers, trading companies and industrial processors. www.umaticapital.com
Photo of the signing ceremony with FMO's CIO Linda Broekhuizen and CEO of Umati Capital, Ivan Mbowa at the Fintech for Inclusion Summit on June 23th 2017.
Photo: Nico Alsemgeest
