Existing investors, The Rise Fund (managed by TPG Growth) and Velocity Capital, also joined the funding round along with other new investors.
The company told Business Insider SSA that the rebranding is necessary to unify its corporate and consumer identities along with one unique and memorable brand.
“As the company expands into newer markets, we were looking to retain a name which is more global/universally accessible in any language/geography,” Migo CEO, Ekechi Nwokah, said in an email note to Business Insider SSA.
What Migo will use the new funding for
With less than 30% formal credit penetration in Brazil, Migo said it will use part of the fund to launch operations in the Latin American market, as well as its continued growth in Nigeria.
"Our mission is to drive commerce around the world by injecting liquidity into the last-mile retail sector," explains Nwokah. "We believe the best way to achieve this goal is to build digital infrastructure to empower local enterprises that already serve millions of consumers and small businesses.”
Migo offers a simple API so its partners can offer co-branded credit services in their apps and websites, increasing customer engagement and serving customer segments they were not previously able to serve.
As part of the financing, Antoine Colaco from Valor Capital has joined the Migo Board of Directors. “Migo combines world-class technology with a deep understanding of the needs of consumers and small businesses in emerging markets. We are excited to partner with them in Brazil and beyond,” Colaco said.
Migo to partner with retail enterprises in Latin America
With this expansion into Brazil, its first Latin American nation, Migo hopes to partner with some of the largest retail enterprises.
“The typical Silicon Valley approach of move-fast-and-break-things doesn’t work well in emerging markets. To create durable solutions, it is important to combine the audacity of cutting-edge technology with humility to the nuances of local markets” says VP of Growth, Adia Sowho.
The Nigerian startup started as a research project on high-performance artificial intelligence led by Migo Chief Scientist, Kunle Olukotun, a professor of computer engineering at Stanford University.
This project came to life after a chance meeting between Olukotun and Nwokah, a computer scientist working on big data projects at Amazon Web Services. Following their meeting, the pair teamed up to direct the technology toward solving credit in emerging markets.
In August 2018, the fintech startup closed a Series A round of $13 million and expanded to South America and South-East Asia.
At the KPMG Digital Summit in November 2019, Nwokaha said Migo has received 7 million loan applications, approved 1 million and disbursed N36 billion in the last two years. It is also eyeing the Mexican market, another large market with less access to access.
