Access to affordable capital is key to grow small enterprises. Sevi enables access to (micro) loans at affordable rates through digital group solidarity.
Small and medium enterprises are the backbone of stable economies, in terms of job creation and GDP. However, access to affordable finance is one of the main hurdles for micro-entrepreneurs and farmers to grow their business. Microfinance has been the promise for economic development in low and/or lower-middle-income countries, but interest rates (global av. 37%) are high.
To drop interest rates, Sevi developed a fully automated KYC and verification process, gamified reputation score and transparent transaction wallet as a service to existing credit providers in Kenya. Most digital innovations in Microfinance focus on data-based credit scoring. But since there is a lack of validated data, legal enforcement, official proof of income or collateral, we believe extra security needs to be added; Group Solidarity. This mechanism is widely applied and has been proven through decades of experience. Sevi has translated this proven offline mechanism into an online digital group lending model. Through several iterations, it has reached a <2% default rate.
Sevi provides its services through a simple-to-use mobile app, which requires two smartphones per group. The chair of a loan group creates a group and adds its members (just like in WhatsApp). Through gamified reputation scoring, individuals and groups can increase in benefits. The main advantage for groups is instant access to external credit at affordable rates.
How to get involved
Sevi provides its digital platform to credit providers in Kenya, so they can reach their loan groups efficiently and provide affordable credit to them.
Any introduction to an (international) credit provider is appreciated.
Sevi is looking for a social media marketer to support in setting up the social media strategy and content to reach our target audience, if you are interested please let us know.