Wider, deeper VC investment needed for Indian and African mobile money firms, says Gates Foundation report
Thursday, June 22, 2017
A new financial inclusion report from the Bill and Melinda Gates Foundation, carried out by venture capitalist (VC) firm Village Capital, with the participation of 55 entrepreneurs and 23 investors has found that wider and deeper support is needed to encourage more mobile money firms to launch in India and East Africa.
In excess of 233 million and 60 million people in India and East Africa respectively still lack formal bank accounts and 50% of small businesses don’t have access to formal credit.
Financial technology (fintech) enabled firms such as M-Pesa in Kenya, which provides mobile payment, saving and credit facilities to 30 million people in East Africa, and the Paytm giant mobile m-commerce operation in India that claims 200 million users, are still the exception in terms of providing access to financial services for poor people.