Nigeria-based digital bank FairMoney has launched an asset financing product aimed at helping transport operators and delivery entrepreneurs acquire vehicles, expanding its push into business financing for underserved customers.
Founded in 2017, FairMoney built its business around digital lending, using artificial intelligence to assess borrowers and disburse loans within seconds. The company later expanded into banking services and payments as it sought to deepen its relationship with customers. In 2021, FairMoney raised $42 million in Series B funding to support growth across its lending and banking operations.
The new financing solution targets mobility entrepreneurs, including transport operators and delivery merchants, who often face challenges accessing formal credit from traditional financial institutions. Applicants can apply through FairMoney's digital platform and access repayment plans after meeting credit and eligibility requirements.
The launch comes as Nigeria's transportation and logistics sector continues to expand, driven by growing urban populations, e-commerce activity and demand for passenger transport. Road transport remains the country's primary mode of moving both people and goods, creating demand for financing products that help small operators acquire productive assets.
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Henry Obiekea, managing director of FairMoney, said the company aims to support financial inclusion while helping small business owners grow their operations. He said the product is designed to provide structured financing for eligible transport and logistics operators who play a key role in economic activity across the country.
Key Takeaways
Asset financing is becoming an important growth area for African fintech companies as they look beyond consumer lending and payments. Rather than offering short-term loans alone, digital lenders are increasingly financing income-generating assets such as vehicles, motorcycles, smartphones and business equipment. The approach allows lenders to support entrepreneurship while reducing credit risk because the financed asset can serve as collateral. In Nigeria, where access to credit remains limited for many small businesses, vehicle financing is attracting attention from banks, fintechs and mobility startups seeking to serve the transport and logistics sector. The opportunity is significant as the growth of e-commerce, ride-hailing, delivery services and intercity transport increases demand for commercial vehicles. For FairMoney, the move broadens its product offering and creates another pathway to acquire and retain customers while supporting business activity in one of Africa's largest transport markets.
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