Bitbond, a Berlin-based peer-to-peer bitcoin lending platform, and BitPesa, a Kenya-based bitcoin payments startup, are teaming up to improve access to financing for SMEs in Africa.
Using bitcoin blockchain for payment processing, Bitbond enables global cross-border lending. It connects fixed-income investors with small business owners who need loans.
By working with BitPesa, borrowers who receive funding on Bitbond can now have their loan paid out directly to a mobile money or bank account, the release said. BitPesa pays local currency out to the borrower’s preferred payment option within minutes.
“10% of our global user base comes from Sub-Saharan Africa. We are excited to work with BitPesa in this region because there is a huge unmet demand for small business financing. Together with BitPesa, we can significantly improve our service. This means that a small business owner from Kenya can receive loan funding from investors from all over the world via Bitbond and have the funds paid out to his mobile money account in 20 minutes. This is an unprecedented level of innovation and convenience in the entire online lending space”, founder & CEO of Bitbond Radoslav Albrecht said.
Earlier this year, BitPesa raised $2.5 million in a new Series A round led by Draper VC, and drawing support from Greycroft Partners, Blockchain Capital, BnkToTheFuture, Digital Currency Group, Pantera Capital Future\Perfect Ventures and Zephyr Acorn.
Founded in 2013, Bitpesa expanded operations to Uganda, Tanzania and Nigeria in 2015. The integration between Bitbond and BitPesa is now live in Kenya, Nigeria, Uganda and Tanzania.
“We are always excited to partner with companies that make doing business in Africa easier and more efficient. Our customers are businesses looking to grow across the continent and beyond. Better access to efficient financing is a tremendous way to boost their growth”, BitPesa founder & CEO Elizabeth Rossiello said.
