SDM Case Report: Angala Fintech, Nigeria

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Angala Fintech is a Nigerian early-stage startup, with an agent-based business model, that leverages technology to provide financial services to rural communities.  The company utilizes Payrail, a mobile application to provide a wide range of services including payment services, loans, and insurance to their clients.

Angala’s goal is to onboard agents and businesses onto their Payrail and to provide finance to 17,000 ginger farmers. This SDM report evaluates the business case of Angala Fintech and how it can achieve its expansion aspirations. The report recommends to:

  1. Develop internal organizational capacity by hiring qualified personnel on pivotal organizational positions for business development and engaging an optimum number of agents to implement the growth aspirations of the company.
  2. Implement a risk-based lending approach to its clients to minimize its exposure to risk and reward clients with lower rates of defaults. Further, the company should be keen to minimize its cost of capital by adopting a mixed capital structure with the support of other stakeholders such as impact funds and commercial FSPs.
  3. Invest in data collection capabilities to better understand the profile of their clients and align services based on client needs.
  4. Invest in household-wide training approaches to increase digital and financial literacy, as female are most likely to seek assistance from family members
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