Branch has successfully raised $79.2 million over four funding rounds, focusing on providing financial services to the mobile generation in emerging markets. The platform offers a range of digital banking services, including instant loans, money transfers, and high-yield investments.
Keep reading to explore the intricacies of Branch's fundraising journey and the investors backing this innovative platform.
What Is Branch?
Branch, founded in April 2015, is a financial technology company that provides digital banking services to the mobile generation in emerging markets. The company was co-founded by Matt Flannery, the former CEO of Kiva.org, and Daniel Jung, who serves as the COO.
Branch operates in multiple locations, including San Francisco, Bengaluru, and Nairobi, and has a workforce of 51-200 employees. The platform offers a range of services such as instant loans, money transfers, and high-yield investments.
With a mission to revolutionize banking in regions like Kenya, Tanzania, and Nigeria, Branch leverages mobile technology to offer financial access anytime, anywhere.
How Much Funding Has Branch Raised?
- Series C
- Amount Raised: $170,000,000
- Date: April 2019
- Lead Investors: Foundation Capital, Visa
- Motivation Behind the Round: To expand operations in India and Latin America, enhance technological capabilities, and leverage the partnership with Visa to provide better access to credit and financial services for underserved populations.
- Series B
- Amount Raised: $70,000,000
- Date: March 2018
- Lead Investors: Trinity Ventures, International Finance Corporation, Andreessen Horowitz, CreditEase Fintech Investment Fund
- Motivation Behind the Round: To expand financial offerings to additional countries, including India, and to grow the user base and services, including the introduction of savings accounts.
- Series A
- Amount Raised: $9,200,000
- Date: March 2016
- Lead Investors: Andreessen Horowitz
- Motivation Behind the Round: To hire more staff and roll out services in and beyond Kenya, targeting sole proprietors and entrepreneurs who need small loans.
- Seed
- Amount Raised: Undisclosed
- Date: March 2015
- Lead Investors: Khosla Impact, Formation 8
- Motivation Behind the Round: To focus on product development, market research, and initial marketing efforts.
Total Amount Raised: $249,200,000
Current Valuation: $500,000,000 (~estimated)
Key Investors
- Foundation Capital
- Details: Foundation Capital is a venture capital firm that invests in early-stage companies. They have a strong track record in technology and consumer services.
- Investment Focus Areas: Early-stage venture capital, technology, fintech, consumer services
- Notable Investments: Netflix, LendingClub, Sunrun
- Visa
- Details: Visa is a global payments technology company that facilitates electronic funds transfers worldwide. They are known for their extensive network and innovative payment solutions.
- Investment Focus Areas: Payment technology, financial services, fintech
- Notable Investments: Square, Stripe, Marqeta
- B Capital
- Details: B Capital is a venture capital firm that focuses on growth-stage companies. They partner with entrepreneurs to build market-leading businesses.
- Investment Focus Areas: Growth-stage companies, technology, healthcare, fintech
- Notable Investments: Bird, Ninja Van, Atomwise
- Andreessen Horowitz
- Details: Andreessen Horowitz is a Silicon Valley-based venture capital firm. They invest in both early-stage and growth-stage technology companies.
- Investment Focus Areas: Technology, software, fintech, consumer services
- Notable Investments: Facebook, Airbnb, Lyft
- Trinity Ventures
- Details: Trinity Ventures is a venture capital firm that invests in early-stage technology companies. They have a history of supporting innovative startups.
- Investment Focus Areas: Early-stage venture capital, technology, consumer services, fintech
- Notable Investments: Starbucks, New Relic, Care.com
What's Next for Branch?
Branch's future looks promising as it continues to expand into new markets like India and Latin America. The partnership with Visa opens up significant opportunities, allowing Branch to offer global ATM access and preferential loan terms to merchants. With over 15 million loans already issued, the potential for growth is immense.
Future fundraising seems likely, given the successful Series C round and the growing demand for microfinance in emerging markets. However, Branch will need to navigate regulatory challenges and intense competition from other fintech companies. Ensuring data privacy and security while leveraging smartphone data for credit assessments will also be crucial.
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