underserved

Fintech, Venture

“Introducing PayJoy: Bridging the Gap Between Social Impact and Financial Success in Fintech – A Feature by TechCrunch”

Welcome to TechCrunch Fintech! This week, we’re looking at how two fintech companies serving the underserved are faring, and more! The big storyPayJoy is an example of a company with positive unit economics and a mission to help the underserved. It last raised a $50 million Series C funding round in 2021. And with fintech funding on the decline, this could perhaps partly explain YC’s lack of LatAm interest.

Zara Khan
April 14, 2024

Enterprise, Venture

“Unlocking Financial Access: The Success Story of PayJoy’s $300M Enterprise Empowering the Underserved through Smartphone Collateral Loans”

How PayJoy built a $300M business by letting the underserved use their smartphones as collateral for loansLerato Motloung is a mother of two who works in a supermarket in Johannesburg, South Africa. Then, in February 2024, she saw a sign about PayJoy, a startup that offers lending to the underserved in emerging markets. Motloung is one of millions of customers that San Francisco–based PayJoy has helped since its 2015 inception. And, unlike other startups offering loans to the underserved, it’s doing so in a way that’s not predatory, it says. Last September, PayJoy announced that it had secured $150 million in Series C equity funding and $210 million in debt financing.

Ava Patel
April 11, 2024

Startups

Building Diverse Startups: The Impact of Plug In South LA in an Underserved Community

Derek Smith, the founder of Plug In South LA, grew up in southern Los Angeles and saw first-hand the frustration that stems from lack of economic development. And it’s why Smith’s ultimate goal for Plug In South LA is to smooth the way for Black and brown entrepreneurs looking to build tech startups and need help and guidance. “We really want to support those founders and entrepreneurs who can build businesses that can scale broadly,” Smith told TechCrunch. Smith sees a bevy of underutilized talent in areas like South LA. Vaughn Blake, a partner at Blue Bear Ventures, says he met Smith right after he launched Plug In South LA and was asked to participate on a panel during one of the early demo days.

Dylan Williams
March 3, 2024

Fintech, Startups, Venture

Aye Finance Secures $37M in Funding from British International Investment

In 2020, the startup raised $27.5 million in its Series E funding round led by Alphabet’s CapitalG. It competes with the likes of Capital Float, Lendingkart and Indifi, which all work toward offering credit to small enterprises in the South Asian nation. One key reason for startups like Aye Finance and others to gain enough traction in India is the lack of credit for small businesses. “Aye Finance is on a growth journey, and we are delighted to partner with BII, who have a deep understanding of the financial services sector in India. “Our investment in Aye Finance underscores our commitment to back companies that have a strong development impact philosophy and promote financial inclusion for India’s underserved groups.