Catalyst Fund, the global inclusive fintech accelerator, has announced that six new fintech startups, from Nigeria, South Africa, Mexico and India are joining its existing portfolio of 31 companies and receiving £80,000 in grant capital, bespoke and expert-led venture building support for six months and 1:1 connections with investors and corporate innovators that can help them scale.
The COVID-19 pandemic coupled with the economic crisis has negatively impacted low-income customers and MSMEs. Between 30 and 80 percent of respondents in a BFA Global survey conducted among vulnerable populations across 8 global markets anticipate significant adverse effects to their financial well-being. Many small businesses also indicated reduced incomes may lead them to close. In Nigeria, upwards of 16% reported already unbearable conditions in current lockdowns. Inclusive fintech solutions have the potential to significantly improve the financial health and resilience of these underserved and vulnerable populations, enable businesses to begin to recover, smooth cash flows and provide financial security. Catalyst Fund’s latest cohort includes fintech companies who are all developing solutions that equip households and businesses with financial tools that support their livelihoods and build financial resilience in the wake of the crisis.
Maelis Carraro, Director, Catalyst Fund: “We believe we are facing a catalytic moment during which there is an opportunity to use technology to help low-income consumers and small businesses recover from the impact of COVID-19 and build greater financial resilience for the future. If we support the right companies now – from those finding new ways to provide affordable health and life insurance, to tools that can digitize micro and small businesses and provide new income opportunities, to those that can enable affordable access to essential services – these innovations can grow to play a critical role in improving financial health globally.”
In addition to supporting portfolio companies, the Catalyst Fund team is focused on strengthening local innovation ecosystems, including global and local investors and corporate innovators, through establishing “Circles”, or communities, of peer-investors and corporate innovators. The members vary from Microtraction and Novastar Ventures, to Savannah Fund and VestedWorld.
Catalyst Fund, in January announced $15 million in additional funding from UK aid and JPMorgan Chase & Co., to accelerate 30 new inclusive fintech startups across Kenya, Nigeria, South Africa, Mexico, and India who are building affordable, appropriate and accessible solutions for underserved customers, by 2022. To date, Catalyst Fund has accelerated 31 portfolio companies that have gone on to raise more than $64M in follow-on funding and reach over 2 million low-income customers.