Jia, a blockchain fintech startup, recently revealed it has raised $4.3 million in a seed funding round which was led by the early-stage consumer crypto fund TCG Crypto. Jia has said it will use the funds raised to bolster its Kenyan and Philippines operations. Later, Jia will also use the capital raised to fund the exploration of new markets.
Affordable Financing for Small Businesses
Jia, an Africa and Asia-focused blockchain fintech, recently raised $4.3 million in seed funding plus an additional $1 million for onchain liquidity. According to a Techcrunch report, TCG Crypto, an early-stage consumer crypto fund, led the round.
Also participating in the round were Blocktower, Hashed Emergent, Saison Capital and Global Coin Research. Angel investors that participated in the round include Packy McCormick, Anand Iyer, Jared Hecht and Rory Eakin.
As per the report, Jia is planning to bolster its operations in Kenya and the Philippines with the capital raised. Afterwards, the startup is expected to explore new markets in West Africa, Latin America, and Asia. In his remarks following the successful capital raise, Zach Marks, CEO and co-founder of Jia, said:
The idea is to provide affordable financing for micro-businesses, and when they repay, they become owners by getting token rewards.
Meanwhile, the report suggested that Jia is attempting to create a financing model that is similar to community finance or table-banking groups which are popular in Kenya. In such groups, members are both borrowers and shareholders, which entitles them to an income. According to Marks, the fintech startup typically provides loans of up to $5,000 for small businesses. The interest charged on such loans is about a third of what is levied by a consumer fintech lender.
In addition to availing credit to small businesses, Jia according to Marks is also providing “a path to economic resilience and this opportunity to build wealth in a new way that hasn’t been done before.”
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.