CIM Financial Services Ltd (Cim Finance), a leading Mauritian consumer and SME finance company, reached an agreement with Fundkiss Technologies Limited (Fundkiss) to acquire a minority stake in the company that has flourished as a recognized peer-to-peer lending platform for local SMEs.
“We are delighted to become a strategic partner of Fundkiss. Both our companies strongly believe that a prospering SME sector lies at the heart of a sustainable and inclusive economic growth. We share a common purpose and a strong desire to improve borrowers' convenience through the use of technology and innovation. This move will allow Cim Finance to reach a greater number of SMEs, enhance our knowledge of their needs and continue to develop further innovative forward-thinking and customized offerings”, says Mark van Beuningen, the Group CEO of Cim Finance.
Cim Finance’s investment will help Fundkiss finance its technological development, better structure its marketing strategy and strengthen its team, as part of the platform’s growth plans. Cim Finance will appoint a representative on Fundkiss’ Board of Directors.
This is another strategic milestone reached by Fundkiss Technologies after having been the first Fintech to operate under EDB’s Regulatory Sandbox License (RSL) in 2019 and obtain a Peer-to-Peer Lending license from the FSC in April 2021. For Paul Perrier, CEO of Fundkiss states: “This strategic partnership will not only allow us to accelerate the pursuit of our mission to simplify and democratise financing for SMEs, but also continue to offer a great lending experience our community of lenders. The partnership will also allow to strengthen our operational capabilities.” Since the launch of its operations in 2019, Fundkiss reached a total loan production of MUR100m, a mark reached in November 2021.
As a part of this transaction, Cim Finance will also finance SME projects on fundkiss.mu, adding another institutional investor to lend alongside its growing community of lenders. This joint action by Cim Finance and Fundkiss will allow SMEs able to access funds more quickly and easily.
“Our expertise in financing solutions and the strategies we have developed to connect with SMEs are different and complementary. By joining forces, we will better serve entrepreneurs”, observes Mark van Beuningen.
“This collaboration has a greater impact. It is a great example of how established financial institutions and start-ups can work together to better serve SMEs in Mauritius. It is a win for the entire FinTech ecosystem”, says Paul Perrier, CEO de Fundkiss.