Catalyst Fund, a globally focused accelerator operated by BFA Global, has today revealed the participants in the 8th iteration of its Inclusive Fintech Program.

This annual program concentrates on startups operating in Kenya, Nigeria, South Africa, Mexico, and India, providing selected ventures with £80,000 (approximately $100,000) in grant funding, a six-month period of intensive support, and valuable introductions to potential follow-on investors.

While the 2020 cohort included representation from all five target countries, this year’s selection comprises six startups based in Kenya, Nigeria, and South Africa. These companies specialize in embedded finance solutions, a strategic focus explained by Maelis Carraro, Managing Director of Catalyst Fund, in a recent announcement.

“Fintech is currently undergoing a significant transformation, moving beyond a distinct industry sector. Embedded finance solutions possess the capacity to substantially enhance the appeal of products in related fields, while simultaneously discovering innovative methods to reach and serve individuals with limited incomes through familiar and trusted channels,” she stated.

The startups comprising the 8th cohort are as follows: From Kenya, Koa empowers individuals to save and invest, providing greater control over their financial well-being. Lami is a platform and API offering broader access to insurance coverage for both individuals and businesses. Power provides gig workers and salaried employees with access to earned wages and additional financial tools, alongside the ability to contribute to savings through partner banking institutions. 

Representing Nigeria, Indicina streamlines lending processes for individuals and small businesses by leveraging AI-driven digital credit infrastructure. Jetstream facilitates international trade for businesses, enabling them to export goods and secure trade financing in Nigeria and Ghana.

From South Africa, Kandua connects skilled professionals offering home services with customers, providing them with professional resources and access to digital financial services.

Notably, a significant characteristic of the companies within this cohort is their leadership structure; the majority are either led by or co-founded by women, with Kandua being the sole exception.

“We intentionally aimed for greater inclusivity for women in this cohort, recognizing the existing disparities in funding and support available to female founders, particularly within emerging markets,” Carraro explained to TechCrunch. “Our previous cohort, for instance, consisted entirely of male founders. We are committed to actively supporting as many women founders as possible in the future.”

An IFC report indicates that only 11% of seed funding in emerging markets is allocated to companies with at least one female founder. This percentage decreases at later funding stages, despite evidence demonstrating that investing in gender-diverse teams leads to improved business performance.

These newly selected startups will become part of Catalyst Fund’s existing portfolio of 37 companies, which have collectively secured over $122 million in subsequent funding since 2016.

Jihan Abass, CEO of Lami, stated that the investment will be used to improve the platform’s functionality, integrate additional third-party services, and implement robust data security measures and ISO certifications. For Indicina and CEO Yvonne Johnson, the funding from Catalyst Fund will facilitate the expansion of their platform, incorporating new AI capabilities to enhance credit access across Africa.

This cohort, exclusively comprised of African ventures, underscores Catalyst Fund’s ongoing commitment to supporting fintech innovation on the continent. This support contributes to the growth of a sector that consistently attracts a substantial portion of venture capital investment flowing into the region. Data from Briter Bridges shows that fintech companies accounted for 31% of the total funding secured by African startups last year.

Catalyst Fund is well-positioned to continue this work. Last year, the fund announced an additional $15 million in funding from the UK Foreign, Commonwealth and Development Office (FCDO) and JPMorgan Chase & Co., with the goal of accelerating 30 new inclusive fintech startups by 2022. 

Since then, the fund has invested in 12 startups and will need to support 18 more by next year to meet its stated objective. Having already funded companies such as Chipper Cash, Turaco, Sokowatch, and Cowrywise, which recently completed a $3M pre-Series A round, the fund’s total portfolio now includes 43 startups.