Jia, a blockchain-based fintech company specializing in providing loans to micro and small businesses in emerging markets, has successfully raised $4.3 million in seed funding. The funding round was led by TCG Crypto, an early-stage investor, and saw participation from notable funds including BlockTower, Hashed Emergent, Saison Capital, and Global Coin Research. Angel investors Packy McCormick, Anand Iyer, Jared Hecht, and Rory Eakin also contributed to the round.
In addition to the seed funding, Jia secured an additional $1 million commitment for on-chain liquidity. The company plans to allocate the funds to strengthen its operations in Kenya and the Philippines, while also exploring expansion into new markets such as West Africa, Latin America, and Asia.
Founded by former Tala executives Zach Marks, Cheng Cheng, Ivan Orone, and Yuting Wang, Jia offers loans to borrowers who receive tokens upon repayment. These tokens can be redeemed based on an agreed-upon rate derived from Jia's profits. The goal is to provide affordable financing to micro-businesses, enabling them to become owners through token rewards. Jia packages the tokens as Jia points, which borrowers can use as collateral for lower interest rates, higher loan amounts, and more flexible loan terms.
Jia is replicating the community finance model prevalent in markets like Kenya, where members hold shares and earn from the groups. The fintech has also established its first on-chain pool in collaboration with Huma Finance, an income-backed decentralized finance protocol.
The company fills a financing gap left by digital lenders and loan apps that offer credit of no more than $1,000. Jia's loans range from $200 to $5,000 and are competitively priced, with interest rates approximately one-third that of typical consumer fintech lenders. The repayment period varies based on the borrower and can extend up to six months, with interest rates ranging from 2% to 6% per month.
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To reach its customers, Jia integrates with local partners' apps, such as Ilara Health, which supplies medical inventory to a network of small clinics. By financing an inventory financing program for partners, Jia gains access to proprietary data that helps underwrite loans in a way that traditional lenders cannot.
Jia is part of a growing ecosystem of fintech companies working to bridge the access-to-finance gap faced by businesses in emerging markets like Africa. With 90% of Africa's businesses being small enterprises, there exists a $330 billion financing deficit. Traditional lenders often require collateral and impose time-consuming requirements, making it challenging for these businesses to access loans. Fintechs like Jia is playing a vital role in bridging this finance gap, offering affordable financing and a pathway to economic resilience and wealth-building opportunities for micro and small businesses.
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