SC Ventures and Yabx Partner to Launch Furaha: $10M Investment to Revolutionize Education Financing in Africa

The purpose-driven lending platform leverages cutting-edge technology and banking expertise to improve financial inclusion and access to education across sub-Saharan Africa.

SC Ventures, the innovation, fintech investment, and ventures arm of Standard Chartered, has teamed up with Yabx Technologies (Netherlands) B.V., part of the Tech Mahindra group, to launch Furaha, a groundbreaking platform focused on education financing in sub-Saharan Africa. The joint investment amounts to $10 million, with SC Ventures contributing $7 million and Yabx providing a cutting-edge technology platform.

Furaha, incubated by SC Ventures and co-founded by Yustus Aribariho and Ian Fernandes, is headquartered in the Dubai International Financial Centre (DIFC) and is set to revolutionize financial inclusion in underserved African markets, starting with Uganda.

Enhancing Financial Inclusion

With a youthful population of over 600 million children under the age of 18, Africa faces immense challenges in providing accessible and affordable education financing. Furaha aims to bridge the gap by offering families tailored financial solutions, particularly targeting households with monthly incomes below $500, who often struggle to pay school fees.

“Furaha is purpose-driven at its core, leveraging SC Ventures’ banking expertise and Yabx’s advanced technology to deliver impactful lending solutions,” said Alex Manson, CEO of SC Ventures.

Mohit Joshi, CEO and Managing Director of Tech Mahindra, emphasized, “This partnership redefines financial empowerment and inclusivity by leveraging innovative technologies to address critical issues like education financing. We are excited to collaborate with SC Ventures on this transformative journey.”

Leveraging Advanced Technology

Furaha integrates AI-driven alternate lending capabilities from Yabx and SC Ventures’ deep knowledge in banking and risk management to create a robust, cost-effective platform for lending. The platform uses a rich ecosystem of data for credit scoring, enabling local banks and financial institutions to provide affordable credit to families for education-related expenses.

Current Progress and Future Plans

Furaha has launched its services in Uganda, partnering with organizations like Opportunity Bank, SchPay, and MTN MoMo, providing families with access to loans to cover school fees.

Looking ahead, the platform plans to expand to other African countries, creating a continent-wide impact by supporting children’s education, improving household liquidity, and contributing to the development of communities and nations.

Addressing Key Challenges

Delayed or unpaid school fees often lead to children missing out on education, impacting their future and the overall progress of their communities. Furaha’s innovative approach addresses these challenges by offering:

1. Accessible Financial Solutions: Affordable loans for families, enabling timely payment of school fees.
2. Data-Driven Credit Scoring: Leveraging advanced algorithms to assess creditworthiness and reduce default risks.
3. Partnership Ecosystem: Collaborating with local banks, fintech platforms, and mobile money services to reach underserved communities.

The Bigger Picture

“This collaboration with SC Ventures is a significant milestone for Yabx. Furaha’s focus on education financing not only supports families but also contributes to long-term economic and social development in Africa,” said Rajat Dayal, CEO of Yabx.

Furaha’s mission extends beyond providing loans; it seeks to transform education financing in Africa by making it more inclusive, scalable, and impactful. As it scales operations, Furaha is poised to become a catalyst for change, empowering families and shaping a brighter future for millions of children.