Oze, a Ghanaian fintech firm specialising in AI-driven digital lending solutions, has announced a new funding round backed by payments giant Visa and German development finance institution DEG (Deutsche Investitions- und Entwicklungsgesellschaft). The funding injection, also supported by existing investors Speedinvest and Africinvest through its Cathay AfricInvest Innovation Fund, marks a significant endorsement for the burgeoning African fintech scene and Oze’s ambitions to revolutionise SME financing across the continent.
The Accra-based startup, which was among the first cohort to benefit from Visa’s inaugural Accelerator Program in Africa, is poised to scale its Lending Management System (LMS) with the fresh capital. This platform enables financial institutions, ranging from traditional banks to microfinance entities and digital lenders, to offer unsecured digital loans to small and medium-sized enterprises (SMEs). Oze’s proprietary machine-learning credit risk algorithm underpins the LMS, promising more efficient and data-driven lending decisions in a region where access to finance for SMEs remains a critical bottleneck.
Fabrice Konan, Visa’s Country Manager for Ghana, highlighted the strategic rationale behind the investment. “Visa is committed to fostering innovation and financial inclusion across Africa, and Oze’s vision aligns perfectly with that mission,” he stated. “Their approach to enabling digital lending for underserved small businesses is transformative, and we are excited to partner with them to drive this change.”
DEG’s investment, channelled through its Up-Scaling Programme, underscores the development finance institution’s focus on high-impact, innovative business models within emerging markets. Dr. Tobias Bidlingmaier, Head of Up-Scaling at DEG, emphasised the broader economic potential of Oze’s technology. “Oze’s technology has the potential to unlock financial opportunities for millions of small businesses in Africa, creating sustainable development and fostering inclusive growth. We are proud to support their expansion,” he commented.
For Oze, the funding represents a crucial catalyst for its expansion strategy. Co-founder and CEO Meghan McCormick explained that the capital will accelerate the company’s mission to empower African SMEs. “By scaling our Lending Management System, we can help more financial institutions unlock the potential of SMEs and drive financial inclusion at an unprecedented scale,” she said.
Founded in 2018, Oze operates across eight African nations including Ghana, Nigeria, and Rwanda, partnering with commercial banks like Ecobank to extend its reach. The company’s dual-pronged approach provides both business management software for SMEs — enabling them to track sales, expenses, and customer data — and the digital lending infrastructure for financial institutions. This integrated ecosystem aims to streamline the lending process and mitigate risks associated with SME financing, a sector often perceived as high-risk by traditional lenders.
Oze’s data-driven methodology and commitment to financial inclusion have garnered industry recognition. The company was recently named as a finalist for the prestigious Milken Motsepe Prize for Fintech, competing for a $1 million prize recognising innovative solutions for expanding financial access in emerging markets.
Visa’s investment in Oze follows its broader strategy of engaging with and investing in the African fintech landscape, recognising the continent’s rapid digital transformation and the potential for innovative payment and financial solutions. For DEG, the investment aligns with its mandate to support sustainable economic development and private sector growth in emerging economies.
While the specific amount of the latest funding round remains undisclosed, previous funding announcements indicate a growing investor confidence in Oze ’s business model. In 2022, the startup secured $3 million in a pre-Series A round.
The convergence of a global payments leader like Visa and a development-focused institution like DEG on Oze’s capital table signals a powerful validation of the African fintech opportunity. It highlights the increasing recognition that technology-driven solutions, particularly in digital lending, hold the key to unlocking the economic potential of Africa’s vast SME sector and driving inclusive financial growth across the continent.
