A new chapter in financial inclusion has been unveiled: SC Ventures and Yabx Technologies have joined forces to invest $10 million (approximately Sh1.3 billion) in Furaha, a purpose-driven lending platform.

The collaboration, which combines $7 million (approximately Sh906.5 million) from SC Ventures and a $3 million (approximately Sh388.5 million) technology transfer from Yabx, aims to unlock affordable credit solutions for families and schools across the continent, beginning with Uganda.

Furaha, based in Dubai’s International Financial Centre (DIFC), embodies a blend of innovation and impact, tackling a vital challenge confronting African families: the financial burden of quality education.

With over 600 million children under the age of 18 in Africa, many parents struggle to pay school fees, especially those earning less than $500 (approximately Sh64, 750) monthly.

This often results in interrupted education for children, threatening not only their futures but also the socio-economic development of entire communities.

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According to Alex Manson, CEO of SC Ventures, the partnership is driven by a shared vision to increase financial inclusion in Africa.

“We are glad to partner with like-minded innovators like Yabx and Tech Mahindra who share our vision of increasing financial inclusion and access. The partnership will help enhance purpose-driven financing in Africa and supports our work to rewire the DNA in banking,” Manson said.

Furaha’s platform, powered by Yabx’s advanced AI-driven lending technology, is designed to simplify the education financing process.

The system analyses data to create a robust credit-scoring ecosystem, allowing banks to offer affordable loans to parents and schools.

This ensures that families can pay school fees on time, easing the financial burden and ensuring uninterrupted education for their children.

Rajat Dayal, CEO of Yabx, described the venture as a significant milestone: “This partnership with SC Ventures is a big moment for Yabx. It marks our first step into the education financing space. The long-term impact of a partnership like this is huge, and we’re excited to work with Furaha as they positively impact education outcomes in Uganda and other African countries in the coming months.”

The initiative is a testament to the transformative power of technology in bridging financial gaps. Mohit Joshi, CEO and Managing Director of Tech Mahindra, underscored this sentiment.

“The transformative power of purpose-driven financing lies in its ability to bridge gaps in access and opportunity, particularly in regions like Africa. This strategic partnership aims to make financial solutions more inclusive and impactful," Joshi stated.

"It's indeed an exciting beginning, and we look forward to collaborating with SC Ventures on many such initiatives that redefine financial empowerment and drive innovation globally," he added.

Furaha’s launch in Uganda is just the beginning. The platform’s ambition is to expand across sub-Saharan Africa, offering families a financial lifeline that ensures children remain in school.

By reducing the cost of delivering lending products and leveraging technology, Furaha is poised to widen financial inclusion and redefine the education financing landscape for generations to come.

As Furaha’s journey unfolds, it carries the promise of transforming access to education, giving millions of children the chance to realise their potential and secure a brighter future.