Kenya - Startup under 3 years old

Describe your project or startup in a few words

Jackfruit Finance was created to bridge the financial divide in education, making quality education accessible for every child in Sub-Saharan Africa. Our solution provides accessible and affordable loans to low-fee private schools in Kenya.

01.01 Describe your startup in more detail

Jackfruit Finance offers tailored financial solutions to low-fee private schools in Kenya, addressing the challenge of financial exclusion faced by these institutions. Our tech-enabled products are designed to provide affordable and accessible financing to enhance the quality of education. Our core products include: Project and Asset Loans to support the development of school infrastructure and purchasing of school buses/vans and other facilities. Working Capital Loans to support day-to-day operational expenses and address immediate financial needs. Impact-Linked Loans aimed at rewarding schools for improved literacy and numeracy rates. These learning outcome assessments are conducted by a third party. The primary beneficiaries of our innovation are low-fee private schools in Kenya. Ultimately, the children attending these schools, their families and the broader community stand to gain the most, as improved educational opportunities can significantly alter life trajectories.

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

Low-fee private schools make up an important share of schools in Kenya, especially for children in marginalized communities and slums. In 2019, there were 18,147 private schools out of the 46,530 schools at the pre-primary level, representing 39.0% of the market share. At the primary level, 9,058 private schools out of a total of 32,344 primary schools, representing 28.0% of the market share, and at the secondary level, 1,554 private schools out of 10,487 secondary schools, representing 14.8% of the market share (UNESCO, 2020). Official statistics estimate that of the 15 million children enrolled in school in Kenya, 16.0% of primary school enrolments and 8.0% of secondary school enrolments are in the private sector, with these numbers rapidly growing. Despite the critical role that private education plays in serving the needs of the Kenyan population, the sector faces enormous financial exclusion from traditional lenders due to insufficient collateral and perceptions of high risk.

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

Enhanced Financial Access for Schools: Jackfruit Finance provides affordable loans tailored to low-fee private schools, enabling them to improve infrastructure and educational services. This support is crucial for schools in under-resourced communities, facilitating better learning environments and outcomes for students. Data-Driven Credit Assessment: Utilizing AI and machine learning, Jackfruit Finance has developed a robust credit scoring system that assesses 300 unique data points. This allows for accurate and fair credit assessments of schools typically overlooked by traditional banking systems. Climate Resilience and Sustainability: Through partnerships with experts like BuildX Studio, Jackfruit Finance supports schools in implementing climate-resilient infrastructure. This includes flood-proofing, improved insulation, and sustainable building materials, ensuring schools are better equipped to handle extreme weather conditions and reduce long-term operational costs.

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

Low-Fee Private Schools: Jackfruit Finance primarily serves low-fee private schools in Kenya, particularly those in under-resourced communities. These schools provide critical educational services and often lack access to traditional financial services. School Leaders and Owners: The services are aimed at school leaders and owners, especially women, providing them with the financial support needed to improve infrastructure, enhance educational quality, and sustain operations. Students and Families: Ultimately, the primary beneficiaries are the students, especially those from low-income families, who gain access to better educational environments and resources. Improved school infrastructure directly impacts students' learning experiences and outcomes. Teachers and Non-Teaching Staff: By improving school infrastructure and financial stability, Jackfruit Finance indirectly benefits teachers and non-teaching staff by providing a more stable and supportive work environment.

01.05 When was your company established?

2021-11-03

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

1

01.08 Among the other owners, how many are female?

0

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

Rob Alhadeff is a Co-Founder and the Chief Executive Officer (CEO) of Jackfruit Finance. With nine years of experience in international credit management, Rob has developed a deep understanding of financial systems, particularly within the educational sector in East Africa. Rob drives the strategic direction of Jackfruit Finance, ensuring alignment with long-term goals and mission. Max Weiner is a Co-Founder and the Chief Technology Officer (CTO) of Jackfruit Finance. He has over six years of experience in scaling distribution and managing product development in tech startups across East Africa. He excels in integrating technology to optimize operations, ensuring that Jackfruit Finance's services are efficient and user-friendly.

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

https://www.jackfruitfinance.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

Jackfruit Finance contributes to SDG 2 (No Poverty) by providing affordable financing to low-fee private schools, thus improving access to quality education for low-income communities. By facilitating the development of educational infrastructure, Jackfruit Finance enables these schools to not only increase their revenues, but also offer better learning environments and opportunities, which can lead to increased educational attainment and economic opportunities for students. This, in turn, helps break the cycle of poverty by empowering individuals with the skills and knowledge needed to improve their socio-economic status. Additionally, by targeting women-led schools, Jackfruit Finance promotes gender equality and supports the economic empowerment of women. Furthermore, by facilitating the development and sustainability of these schools, Jackfruit has contributed to creating and maintaining jobs for 4,500+ teachers and non-teaching staff, benefiting local communities economically.

02.02.01 My startup contributes to the Zero hunger goal

1 - Strongly Disagree

02.02.02 Zero hunger - Justification for my startup

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

5

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

Jackfruit Finance contributes to SDG 3 (Good Health and Well-being) by improving the infrastructure of low-fee private schools, which includes essential facilities such as clean water, sanitation, and hygiene (WASH). By financing upgrades and ensuring schools have adequate WASH facilities, Jackfruit Finance helps reduce the spread of diseases and promotes better health among students. Additionally, the improved learning environments foster mental well-being and overall health, ensuring that students can focus on their education without health-related disruptions. This holistic approach to educational infrastructure directly supports the physical and mental well-being of students. Additionally, Jackfruit Finance is expanding to the private health sector, which also faces significant financial exclusion. By providing financing options to private health providers, Jackfruit supports better health outcomes and greater access to quality healthcare services for underserved communities.

02.04.01 My startup contributes to the Quality education goal

7 - Strongly Agree

02.04.02 Quality education - Justification for my startup

Jackfruit Finance contributes to SDG 4 (Quality Education) by providing affordable financing to low-fee private schools. This funding enables these schools to improve their infrastructure, hire qualified teachers, and purchase educational materials, thereby enhancing the overall quality of education. By targeting schools in under-resourced communities where public schools are overcrowded and underfunded, Jackfruit Finance ensures that quality education is accessible to children who might otherwise be excluded.

02.05.01 My startup contributes to the Gender equality goal

7 - Strongly Agree

02.05.02 Gender equality - Justification for my startup

Jackfruit Finance contributes to SDG 5 (Gender Equality) by prioritizing financial support for women-led and women-benefiting educational institutions. By providing affordable loans to these schools, Jackfruit Finance empowers female leaders in the education sector, promoting gender equality in educational leadership. Additionally, the improved infrastructure and resources funded by Jackfruit Finance enhance the learning environment for female students, ensuring they have equal opportunities to succeed. This focus on women-led schools and female students helps to break down gender barriers and support the economic and social empowerment of women and girls.

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

Jackfruit Finance contributes to SDG 6 (Clean Water and Sanitation) by financing projects that improve water and sanitation infrastructure in low-fee private schools. These projects include the installation of rainwater harvesting systems, construction of clean and safe toilet facilities, and the provision of handwashing stations. By enabling these schools to improve their water and sanitation facilities, Jackfruit Finance ensures a healthier learning environment for students, reduces the spread of waterborne diseases, and promotes good hygiene practices. This not only enhances students' health and well-being but also supports their overall educational experience, especially for girls who are disproportionately affected by inadequate WASH facilities.

02.07.01 My startup contributes to the Affordable and clean energy goal

5

02.07.02 Affordable and clean energy - Justification for my startup

Jackfruit Finance contributes to SDG 7 (Affordable and Clean Energy) by financing projects that integrate renewable energy solutions into low-fee private schools. This includes funding for the installation of solar panels, which provide a sustainable and cost-effective energy source for schools. By supporting the adoption of clean energy, Jackfruit Finance helps reduce schools' reliance on fossil fuels, lower energy costs, and decrease their carbon footprint. This not only ensures a more stable and affordable energy supply but also promotes environmental sustainability and resilience against energy-related disruptions.

02.08.01 My startup contributes to the Decent work and economic growth

5

02.08.02 Decent work and economic growth - Justification for my startup

Jackfruit Finance contributes to SDG 8 (Decent Work and Economic Growth) by providing affordable financing to low-fee private schools, enabling them to improve and expand their infrastructure. This creates job opportunities in construction and maintenance. Additionally, by ensuring these schools can operate effectively, Jackfruit Finance supports the employment of teachers and administrative staff. By focusing on women-led schools, the organization also promotes gender equality in the workforce. Furthermore, better-educated students contribute to long-term economic growth by enhancing the local talent pool and fostering entrepreneurial initiatives.

02.09.01 My startup contributes to the Industry innovation and infrastructure

5

02.09.02 Industry innovation and infrastructure - Justification for my startup

Jackfruit Finance contributes to SDG 9 (Industry, Innovation, and Infrastructure) by providing financial support for the development and improvement of educational infrastructure in low-fee private schools. This enables the construction and renovation of school buildings, ensuring they are resilient to climate challenges like floods and heatwaves. By leveraging innovative technology, such as AI for credit assessment and digital platforms for financial management, Jackfruit Finance enhances operational efficiency in disbursing loans and promotes the adoption of modern infrastructure solutions. This fosters a sustainable and inclusive environment for learning and development in underserved communities.

02.10.01 My startup contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification for my startup

Jackfruit Finance contributes to SDG 10 (Reduced Inequalities) by providing accessible and affordable financing to low-fee private schools, primarily serving low-income communities. By offering tailored financial solutions and credit to schools often overlooked by traditional financial systems, Jackfruit Finance helps bridge the gap in educational resources and infrastructure. This not only enhances educational opportunities for marginalized populations but also promotes economic empowerment and social mobility, particularly for women-led schools, thereby reducing educational and economic disparities within these communities.

02.11.01 My startup contributes to the Sustainable cities and communities goal

5

02.11.02 Sustainable cities and communities - Justification for my startup

Jackfruit Finance contributes to SDG 11 (Sustainable Cities and Communities) by supporting the development of resilient educational infrastructure in low-income urban areas. By financing low-fee private schools, Jackfruit Finance ensures that these institutions can invest in climate-resilient and environmentally sustainable facilities. This includes infrastructure that is resistant to floods and extreme weather, promoting safer and more sustainable urban communities. Additionally, these improvements create inclusive, accessible, and quality learning environments, fostering a sense of community and stability within marginalized urban areas.

02.12.01 My startup contributes to the Responsible consumption and production goal

1 - Strongly Disagree

02.12.02 Responsible consumption and production - Justification for my startup

02.13.01 My startup contributes to the Climate action goal

5

02.13.02 Climate action - Justification for my startup

Jackfruit Finance contributes to SDG 13 (Climate Action) by financing the development of climate-resilient infrastructure in low-fee private schools. This includes flood-proofing and improving insulation to protect against extreme weather conditions. By partnering with organizations like BuildX Studio, Jackfruit Finance ensures that schools can adopt sustainable building practices and technologies. Additionally, they promote the use of renewable energy solutions, such as solar panels, to reduce carbon footprints. These efforts help schools adapt to and mitigate the impacts of climate change, fostering more sustainable and resilient communities.

02.14.01 My startup contributes to the Life below water goal

1 - Strongly Disagree

02.14.02 Life below water - Justification for my startup

02.15.01 My startup contributes to the Life on land goal

1 - Strongly Disagree

02.15.02 Life on land - Justification for my startup

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

1 - Strongly Disagree

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

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

Jackfruit Finance contributes to SDG 17 (Partnerships for the Goals) by actively collaborating with various stakeholders to enhance educational outcomes and climate resilience in low-income communities. By partnering with organizations like BuildX Studio for sustainable infrastructure projects, TeachUNITED and Instill Education for teacher upskilling programs, East Africa Book Publishers for affordable textbooks, Cheza Cheza for after school programs, and Dalberg for research and evidence generation, and leveraging relationships with investors and grant providers, Jackfruit Finance mobilizes financial and technical resources. These partnerships help in scaling impact, sharing knowledge, and achieving common goals for sustainable development. Through these collaborations, Jackfruit Finance amplifies its efforts to support quality education, gender equality, and climate action.

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

1 - Strongly Disagree

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

7 - Strongly Agree

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

5

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

Jackfruit Finance operates in a niche market, providing financial services specifically tailored to low-fee private schools in Kenya. Traditional banks and financial institutions typically overlook these schools, meaning that there are few alternatives available that address their unique financial needs as comprehensively as Jackfruit Finance does. Our impact-linked loans (ILLs) represent an entirely new financial product in the education sector in Kenya. By tying financial incentives to specific educational outcomes, we provide a unique solution that goes beyond traditional lending to actively promote and support educational improvements. While based on traditional loan products, our incorporation of AI and machine learning, along with offerings such as the impact-linked loans, represent a new version with enhanced features designed to drive educational outcomes. This evolution from conventional microloans to a more sophisticated, results-driven financial product sets us apart.

06.09 Competitive Analysis

Ed Partners Africa is the 'pure competitor' to Jackfruit Finance, occupying the same market space and vying for the patronage of low-income private schools in Kenya. Ed Partners adopts a hub-and-spoke operational model, indicative of a strategy that prioritizes a localized, non-technology approach to customer service which significantly delays processing loans and has led to numerous operational missteps. By mid-2021, they had disbursed loans totaling $1.5M across more than 140 schools , marking their significant impact on the education sector. In contrast, JF harnesses cutting-edge technology to expedite the loan application process and tailor financial products to the unique needs of each school. This technological prowess not only enables more efficient risk assessment and more favorable loan terms but also underscores JF's commitment to innovation. Additionally, JF's introduction of reward programs reflects a comprehensive strategy to build value and cultivate customer loyalty.

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

Jackfruit Finance has a strong gender lens in its investing strategy. Approximately 72% of our clients/school owners are female.