Providing inclusive financial services to the online informal and underserved economy, Power has secured a $3 million seed funding.
Power is focused on helping workers access affordable and appropriate financial services. The company works with regulated banking and lending partners to provide efficient tools required for payments, savings, borrowing and protecting user data.
Fostering Power’s goal to expand across Kenya and launch in Zambia, where it plans to be a technology partner rather than an active lender, the funding round was led by DOB Equity with participation from QED Investors, Quona Capital, Zephyr Acorn, and Norrsken Impact Accelerator.
Power provides short and long-term loans, investment opportunities, and insurance products to employees and contractors – gig workers – of companies on-boarded on their platform. This helps in reducing the risk of defaults, and borrowers can access payable funds.
So far, Power has on-boarded 75 companies in Kenya, giving it access to over 40,000 workers, out of which it’s been able to serve 15%.
Employees are able to access a percentage of their earnings in advance, and long-term loans on its balance sheet, based on their earnings, for 2-3% interest a month. HR are also able to access, approve or reject employee loan requests.
For Individuals, they can purchase various insurance products, and make repayments over an extended period, which attracts the same interest, giving them access to packages by partner companies that require lump-sum payments.
Power, which has disbursed over $1.5 million in loans since launch and plans to reach 250 companies in Kenya, integrates payment or payroll systems enabling workers to download the Power app. It also conducts digital identity checks, and opens up its four key services to them. The company has signed a deal with First Capital Bank.
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