TLG Capital today announced an investment in Branch International Financial Services Limited (“Branch Nigeria”) through its Credit Opportunities Fund (COF).
Branch Nigeria is a fully owned subsidiary of Branch Inc, a (Delaware-registered, San Francisco based) fintech company with operations in Africa (Kenya and Nigeria), the Americas (Mexico) and Asia (India). Branch uses an algorithmic, machine-learning approach via its smartphone app to determine its potential customers’ credit worthiness.
Branch has raised over $200M in debt and equity to drive financial inclusion in emerging markets. Investors and shareholders include Andreessen Horowitz, Foundation Capital, IFC and Visa. Branch’s strategic partnership with Visa allows the business to offer virtual prepaid debit cards – giving credit to otherwise unbanked customers at local ATMs.
Branch Nigeria is TLG’s twenty fifth investment in Africa, sixth financial services deal in Nigeria and third African microfinance transaction. It is also TLG’s first Naira-funded private investment secured with a USD hedge. TLG’s funds provide Branch Nigeria with the opportunity to further grow its loan book. The average loan size of $22 and tenor of 36 days shows who Branch’s target customers typically are – those traditionally neglected by large financial institutions. TLG was founded with the belief that commercial and social returns can and should go hand in hand, and the Branch business model illustrates this.
Maria Rotilu, CEO of Branch Nigeria, said “Over 800,000 Nigerians have accessed capital via Branch’s Android app to fuel micro-business growth or invest in their family’s wellbeing. We are delighted to partner with TLG to further access to capital in Nigeria”.
Matt Flannery, Group CEO at Branch, said “Our mission is to deliver world class financial services for the mobile generation in emerging markets. TLG gets this massive opportunity and has the deep experience, networks & knowhow to be an ideal partner across Africa”.
Saad Sheikh, Principal at TLG, said “Branch has a robust approach to lending, tailored to Emerging Markets. It leverages data science and customer insights to drive tech, resulting in high quality customers. We are excited to work with Branch to grow this partnership.”
About Branch Inc.: Branch International Inc. is a FinTech company that uses cutting edge technology to deliver innovative financial products across emerging markets. It is headquartered in San Francisco, USA. Branch combines world class data science, advanced customer insights and lending best practices to provide the most advanced credit solution through a mobile App. It has established wholly owned subsidiaries in Kenya, Nigeria, Mexico and India.https://branch.co/
About TLG Capital: TLG Capital is an award-winning investment holding company which focuses on private investment opportunities across the capital structure. In a short span of time, the firm has built a reputation for achieving superior commercial returns with a social impact. It has garnered the backing of some of the most prominent and reputable investors in the alternative investments space. www.tlgcapital.com