SC Ventures & Yabx invest $10M to launch Furaha, transforming financing access in Africa

SC Ventures, the innovation and fintech investment arm of Standard Chartered, and Yabx Technologies, a Tech Mahindra Group company, have announced a joint $10 million investment to launch Furaha, a purpose-driven lending platform aimed at enhancing financial inclusion in Africa.

Furaha, headquartered in Dubai International Financial Centre (DIFC), will focus on offering loans centered on education, gender, and other socially responsible pillars across sub-Saharan Africa. The initiative begins with education financing in Uganda, with plans to expand into additional African markets in the coming months.

SC Ventures contributed $7 million to the investment, while Yabx Technologies provided its advanced technology platform and expertise. Furaha leverages SC Ventures’ banking and risk management capabilities alongside Yabx’s AI-driven alternative lending solutions to create affordable and accessible financial products for underserved communities.

Africa’s youthful population, with over 600 million children under 18, faces significant challenges in accessing quality education due to financial constraints. Many families, particularly those earning less than $500 per month, struggle to pay school fees on time, risking their children’s education and future opportunities.

Furaha seeks to bridge this gap by providing affordable education loans through partnerships with local financial institutions, including Opportunity Bank, SchPay, and MTN MoMo in Uganda. By building a robust credit-scoring ecosystem and enabling commercial banks to channel affordable credit, Furaha aims to ensure timely access to education financing for families in need.

Alex Manson, CEO of SC Ventures, stated, “We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access. This partnership will help enhance purpose-driven financing in Africa and supports our work to rewire the DNA in banking.”

Mohit Joshi, CEO and Managing Director of Tech Mahindra, added, “The transformative power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity. We are excited to collaborate with SC Ventures on redefining financial empowerment and driving global innovation.”

Rajat Dayal, CEO of Yabx, noted, “This partnership marks a significant milestone for Yabx as we step into the education financing space. Furaha has the potential to positively impact education outcomes in Uganda and beyond, driving long-term benefits for families and communities.”

With Uganda as its initial market, Furaha plans to extend its operations across other African countries to further its mission of financial inclusion and empowerment. By integrating technology and banking expertise, Furaha aims to reduce the cost of delivering purpose-driven loans while addressing critical socio-economic challenges in the region.

This partnership underscores the growing importance of collaborative efforts in leveraging technology and finance to address global challenges and drive meaningful change