Mobile Lending App Branch Raises $170 Million Series C Round| Partners With Visa

Fresh from launching in India, Branch International, a micro-lending app for emerging markets has raised $170 million in Series C financing led by Foundation Capital and Visa.

B Capital, Andreessen Horowitz, Formation 8 and Trinity Ventures also participated in the round. The firm has also announced a new partnership with Visa.

Launched in India last month, Branch has added more than 30,000 users so far and aims to use this new round of capital to continue to build its presence in India as well as in Latin America. Branch now claims to be serving more than 3 million customers across its markets and has more than issued 15 million loans in Kenya, Nigeria, Tanzania, Mexico, and India.

Branch is competing Tala in both Kenya and India and OneFi in Nigeria. In India, Branch borrowers might visit a local convenience store or bank to retrieve their loan using a code sent to their smartphone. But with Visa on board, Branch will now have access to a global network of local ATMs so that borrowers will be able to withdraw funds from an ATM using “virtual” Visa credentials within that code, no physical debit debit card or bank account required.

This service will also be extended to merchants who accept Visa on mobile phones in Kenya, Tanzania, and Nigeria.

“As we look to the future, we are looking for the opportunity to reach people who are outside of the formal economy or in places that are underserved,” says Bill Sheedy, Visa’s executive vice president of strategy, of the new investment with Branch. “It’s about tapping into their distribution to help shape the future of microfinance.”

Alex Rampell, a general partner at investor Andreessen Horowitz, says the potential of Branch’s business model has only become more clear as Branch grows: “The idea has become even better as time has gone on, and the market uptake shows it.”

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