Opening a new chapter in blockchain-based finance, the fintech firm Jia has secured a significant investment of $4.3 million in seed funding.
This early-stage financial boost has been spearheaded by TCG Crypto, bolstered by several participating entities including BlockTower, Hashed Emergent, Saison Capital, and Global Coin Research.
Additionally, an extra $1 million has been allocated for on-chain liquidity, underscoring the confidence of investors in Jia’s model.
Jia creating waves in Kenya and the Philippines
Jia, founded in 2020 by a team of former Tala executives, including Zach Marks, Cheng Cheng, Ivan Orone, and Yuting Wang, focuses on providing loans to micro and small businesses in emerging markets.
As of now, the company’s operations are primarily concentrated in Kenya and the Philippines, but with this fresh infusion of capital, the company plans to enhance its presence in these areas and then venture into new territories in West Africa, Latin America, and Asia.
Jia operates on a unique model, utilizing decentralized finance to disburse loans to borrowers who then receive tokens post-repayment. These tokens are redeemable based on profits at a predetermined rate, making borrowers into owners with each repayment.
“Providing affordable financing for micro-businesses is our core mission, and when these businesses repay their loans, they become part of Jia by earning token rewards,” explained Marks, the CEO and co-founder of Jia.
A new model of community finance
Jia’s business model is inspired by community finance groups, notably popular in Africa, which allow borrowers to hold shares and earn from the group. This approach has been replicated in a digital space, creating a new opportunity for micro-businesses to access funds and build wealth.
Jia offers loans up to $5,000, significantly higher than most digital lenders and loan apps, which typically cap credit at $1,000. This allows the company to fill an existing gap in the market, catering to small businesses that require more substantial funding to grow.
“With our loans ranging from $200 to $5,000, we are competitively priced, charging about a third of the interest rate of typical consumer fintech lenders,” Marks stated.
Tapping into local networks
A critical aspect of Jia’s strategy is integration into the apps of local partners, such as Ilara Health. This allows Jia to leverage existing networks and gain proprietary data, which aids in making more informed underwriting decisions.
With small enterprises making up 90% of Africa’s businesses, the lack of access to finance is a significant barrier to growth, creating a financing deficit estimated at $330 billion.
Fintech companies like Jia are poised to bridge this gap, opening up the world’s capital to MSMEs and offering a path to economic resilience.
As it continues to expand, Marks remains optimistic about the company’s role in shaping the future of finance. “Jia is not just providing financing, we are providing a path to economic resilience and this opportunity to build wealth in a new way that hasn’t been done before.”
