Techstars-Backed BlackCopper Set Out to Disrupt Lending, Now It Owes Investors ₦1 Billion
Lending is a tough nut to crack, and Nigeria’s biggest banks, valued at trillions of naira, know this too well. Only 6.2% of Nigeria’s adult population had access to loans in 2019, a measure of how much banks avoid retail lending. Lending to small businesses is the same story; banks avoid it like a plague.
Fintech startups saw the opportunity in this untapped market, but turning digital lending into a viable business has been tougher than expected. Without strong incentives to pay back loans, defaults are common and losses can mount quickly. Every lesson in digital lending is expensive.
Photo courtesy of Ketut Subiyanto.
Source: TechCabal (link opens in a new window)
- Categories
- Investing
- Tags
- digital finance, failure, fintech, lending, startups
