Kenya - Startup under 3 years old

Describe your project or startup in a few words

Mywagepay offers an infrastructure for embedded credit (Embed, Score Check, Capital) to enhance financial inclusion for Africa's 44 million SMEs that need more finance than they can access, resulting in 65% of them failing within 3 years.

01.01 Describe your startup in more detail

Mywagepay is a pioneering fintech company based in Kenya, dedicated to transforming the financial landscape for small and medium enterprises (SMEs). With over 44 million SMEs in Africa, 65% need more financing than they can access, leading to financial stress and a survival rate of less than three years for most. This creates a $421 billion financing gap in the market. Mywagepay aims to unlock SME lending by building an infrastructure for embedded credit. The company offers three innovative products: Embed, Score Check, and Capital. Embed integrates financial solutions directly into aggregator partners' ecosystems, Score Check leverages machine learning and data analytics to evaluate creditworthiness, and Capital extends funding to underserved SMEs. By collaborating with fintechs, payment service providers, and other lenders, Mywagepay empowers these aggregators to extend financial solutions, enhancing financial inclusion and supporting the growth and stability of SMEs.

01.02 What is the main problem you are trying to solve?

The main problem Mywagepay is trying to solve is the significant financing gap faced by small and medium enterprises (SMEs) in Africa. Despite being critical to economic growth and job creation, 65% of Africa's over 44 million SMEs are unable to access the financing they need, leading to financial stress and a survival rate of less than three years for most. This results in a $421 billion financing gap. Mywagepay aims to address this issue by providing innovative financial solutions that enhance access to credit and financial inclusion for underserved SMEs.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

1. Enhanced Access to Financing: Mywagepay bridges the significant financing gap for SMEs by offering tailored financial solutions. This access to credit helps SMEs overcome financial barriers, ensuring their survival and growth in a competitive market. 2. Data-Driven Credit Evaluation: Through Mywagepay's Score Check product, SMEs benefit from advanced machine learning and data analytics to assess creditworthiness accurately. This reduces the risk for lenders and ensures that more businesses can secure the funding they need based on reliable credit assessments. 3. Seamless Integration for Aggregators: Mywagepay's Embed product integrates financial solutions directly into the ecosystems of aggregator partners such as fintechs and payment service providers. This integration not only simplifies the process for SMEs to access funds but also enhances the value proposition for aggregators by enabling them to offer additional services to their network of SMEs.

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

Mywagepay's products and services are aimed at serving small and medium-sized enterprises (SMEs) across Africa, particularly those facing significant financial constraints. The targeted beneficiaries include: 1. SMEs in Need of Financing: SMEs that struggle to access the necessary funding to grow and sustain their operations due to the significant financing gap. This includes businesses across various sectors such as retail, manufacturing, and services. 2. Women-Owned and Marginalized SMEs: SMEs owned by women and other marginalized groups who often face even greater barriers to accessing credit. Mywagepay aims to support these enterprises to promote inclusivity and economic empowerment. 3. Aggregator Partners: Fintechs, payment service providers, and other financial intermediaries who have a network of SMEs under their platforms. By partnering with these aggregators, Mywagepay extends its financial solutions to a broader base of SMEs, enhancing financial inclusion.

01.05 When was your company established?

2021-07-05

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

4

01.08 Among the other owners, how many are female?

1

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

Beth Mwangi, CEO - Masters in B

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://www.mywagepay.com

01.11 Which industry best describes your project?

g) Financial services

02.01.01 My startup contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification for my startup

By empowering underserved SMEs to access capital, Mywagepay helps them contribute positively to the economy. These companies are enabled to become sustainable

02.02.01 My startup contributes to the Zero hunger goal

7 - Strongly Agree

02.02.02 Zero hunger - Justification for my startup

Among the SMEs that Mywagepay supports are those in the agribusiness sector. These SMEs work towards eliminating hunger and Mywagepay provides them with capital

02.03.01 My startup contributes to the Good health and well-being goal

7 - Strongly Agree

02.03.02 Good health and well-being - Justification for my startup

While Mywagepay is not directly in the healthcare sector, it nevertheless supports SMEs in this sector financially.

02.04.01 My startup contributes to the Quality education goal

5

02.04.02 Quality education - Justification for my startup

While Mywagepay is not directly in the education sector, it nevertheless supports SMEs in this sector financially.

02.05.01 My startup contributes to the Gender equality goal

7 - Strongly Agree

02.05.02 Gender equality - Justification for my startup

Mywagepay is an equal opportunity employer and understands the importance of helping underserved SMEs which include those led by women to solve the problem of disparate access to financing that discriminates against women

02.06.01 My startup contributes to the Clean water and sanitation goal

5

02.06.02 Clean water and sanitation - Justification for my startup

While Mywagepay is not directly in this sector, it nevertheless supports SMEs in this sector financially.

02.07.01 My startup contributes to the Affordable and clean energy goal

4

02.07.02 Affordable and clean energy - Justification for my startup

While Mywagepay is not directly in this sector, it nevertheless supports SMEs in this sector financially.

02.08.01 My startup contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification for my startup

Mywagepay helps support underserved SMEs, ensuring they are sustainable, create employmet, and contribute to economic growth.

02.09.01 My startup contributes to the Industry innovation and infrastructure

7 - Strongly Agree

02.09.02 Industry innovation and infrastructure - Justification for my startup

Mywagepay is an innovative fintech startup and contributes to enhanced financial inclusion through leveraging technology with our Embed and Score Check products.

02.10.01 My startup contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification for my startup

By providing embedded finance infrastructure to underserved SMEs, Mywagepay contributes in reducing ineq

02.11.01 My startup contributes to the Sustainable cities and communities goal

3

02.11.02 Sustainable cities and communities - Justification for my startup

While Mywagepay is not directly in this sector, it nevertheless supports SMEs in this sector financially.

02.12.01 My startup contributes to the Responsible consumption and production goal

7 - Strongly Agree

02.12.02 Responsible consumption and production - Justification for my startup

Mywagepay provides financing for companies to enable them circulate these revenues in the economy, ensuring responsible consumption and meeting of production goals.

02.13.01 My startup contributes to the Climate action goal

3

02.13.02 Climate action - Justification for my startup

While Mywagepay is not directly in this sector, it nevertheless supports SMEs in this sector financially.

02.14.01 My startup contributes to the Life below water goal

4

02.14.02 Life below water - Justification for my startup

While Mywagepay is not directly in this sector, it nevertheless supports SMEs in this sector financially.

02.15.01 My startup contributes to the Life on land goal

4

02.15.02 Life on land - Justification for my startup

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

4

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

While Mywagepay is not directly in this sector, it nevertheless supports SMEs in this sector financially.

02.17.01 My startup contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification for my startup

Mywagepay's business model entails working with aggregator partners such as fintechs, payment service providers, and others to support underserved SMEs.

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

7 - Strongly Agree

06.02 The product/service represents an entirely new type of product/service.

6

06.03 The product/service could be described as a new technology.

6

06.04 The product/service is an improvement on an existing product or service.

7 - Strongly Agree

06.05 The product/service could be described as an extension of a range of products or services.

7 - Strongly Agree

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

06.07 The product/service is a new version of an old product/service.

7 - Strongly Agree

06.08 Justification for my startup

Mywagepay is both a new innovation and a build up on existing financial structures. The innovation is in the use of technology in ways that had not been widely envisioned before in Kenya such as through the Embed and Score Check features.

06.09 Competitive Analysis

Mywagepay's main competitors are other digital lenders, traditional banks, family, and friends who provide financing to SMEs.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?

Mywagepay is facilitating access to funding for female-led SMEs