SC Ventures, Yabx Invest US$10m in African Fintech Furaha
SC Ventures, the fintech investment and innovation division of Standard Chartered Bank, has partnered with Yabx Technologies, a digital lending subsidiary of IT services provider Tech Mahindra, to invest US$10m in education finance platform Furaha.
The investment comprises US$7m from SC Ventures, while Yabx's contribution comes through technology transfer.
Furaha, headquartered in Dubai International Financial Centre (DIFC), will initially launch in Uganda before expanding across sub-Saharan Africa.
Leadership and Structure
The platform was incubated by SC Ventures and co-founded by Yustus Aribariho and Ian Fernandes.
Alex Manson, CEO of SC Ventures, says: “We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access.
“The partnership will help enhance purpose-driven financing in Africa and supports our work to rewire the DNA in banking.”
The platform combines SC Ventures' risk management systems with Yabx's artificial intelligence-driven alternative lending technology.
This integration aims to reduce operational costs in digital lending, particularly in markets where traditional credit scoring methods often exclude potential borrowers.
Furaha has established partnerships with Opportunity Bank, SchPay and MTN Mobile Money in Uganda. The platform creates credit scoring frameworks using educational institution data, enabling commercial banks to provide financing for education fees.
Market Opportunity
Africa's demographics present a significant market for education finance, with more than 600 million children under age 18.
The platform targets families with monthly incomes below US$500, who face challenges accessing traditional credit products such as credit cards or digital loans.
Most parents lack adequate liquidity or access to short-term borrowing instruments.
Delayed or unpaid school fees often result in children unable to continue or complete their education, impacting their future prospects and community development.
Mohit Joshi, CEO and Managing Director of Tech Mahindra, says: “The transformative power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity, particularly in regions like Africa. This strategic partnership aims to make financial solutions more inclusive and impactful.”
The education financing gap affects both educational institutions and families.
Schools face cash flow issues from delayed fee payments, while students risk education disruption when parents cannot meet payment deadlines.
Yabx CEO Rajat Dayal views the partnership as strategic for the company's expansion: “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 of a partnership like this 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.”
Exploring Furaha
Furaha, established in 2023, is Africa's pioneering purpose-driven financing platform that bridges technology with human empowerment.
With a focus on unlocking financial opportunities for the underserved middle segment, Furaha combines innovative technology with community-centered solutions to create tailored financial pathways.
Specialising in education financing, they're committed to making quality education accessible through their loan programmes, directly supporting SDG4.
Built on core values of integrity, innovation and accountability, Furaha's team collaborates to transform financial barriers into stepping stones for growth, embodying their vision where purpose-aligned financing catalyses societal development.
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