Nigerian cloud-based platform, Kwikmoney has changed its name for the second time as it makes inroads into the international markets. The change in direction and brand outlook is coming after the company raised $20 million from existing and new investors.
Kwikmoney rebranded into Migo to portray itself as a global company. The company has expanded its cloud-based service into the Brazilian market. Nairametrics was informed that the change in the company’s name would better position it in the international market and make it more globally acceptable in its quest to double its market presence.
No takeover: The company was initially known as Kwikcash before it changed to Kwikmoney. Nairametrics learnt that the change wasn’t consequent upon a takeover but it was carried out in order to create a brand that could work well in any market in the world.
Reason for the $20 million funding: Migo opted for new capital infusion in order to increase its workforce and support operations in Nigeria as well as Brazil where it has seen growth potential. The $20 million funding was led by a Brazil-focused venture capital firm, Valor Capital Group; existing investors; The Rise Fund (managed by TPG Growth), and Velocity Capital. The funding round was also joined by new investors, Africinvest and Cathay Innovation.
Apart from the capital infusion, Valor Capital’s Antoine Colaco also joined the Migo Board of Directors. Speaking on the essence of Migo, Colaco said, “Migo combines world-class technology with a deep understanding of the needs of consumers and small businesses in emerging markets. We are excited to partner with them in Brazil and beyond.”
Why this matters: With the $20 million dedicated to improving Migo’s growth in Nigeria, the company would acquire talents to achieve this growth. This will result in reduction of unemployment which the Nigeria Employers’ Consultative Association (NECA) projected to rise to 33.5% next year from the current rate pegged at 23.1% in 2020.
Speaking on the growth of Migo, the Chief Executive Officer, Ekechi Nwokah said, “Our mission is to drive commerce around the world by injecting liquidity into the last-mile retail sector,” adding that, “We believe the best way to achieve this goal is to build digital infrastructure to empower local enterprises that already serve millions of consumers and small businesses.”
What you need to know: Migo is a cloud-based platform that enables companies to offer credit to their customers, augmenting traditional bank and payment card infrastructure. Companies like banks, telecommunications operators and merchants integrate Migo in their apps and Migo underwrites customers to provide them with a digital account and credit line.
The customers can use this credit line to make purchases from a merchant or withdraw cash without the need for point-of-sale hardware or plastic cards. Migo serves underbanked customers who are not typically covered by credit bureaus, having underwritten more than seven million of these customers to date. An estimated 90 million adults in Nigeria and 100 million adults in Brazil have no access to credit, and this is a massive area of untapped growth for emerging market banking ecosystems.