Business Post Contributor
By Sodeinde Temidayo David
Global inclusive tech accelerator, Catalyst Fund, managed by BFA Global, has announced its ninth cohort of fintech companies building solutions designed to improve the resilience of underserved customers and communities.
Catalyst Fund has been created to support early-stage startups that are building affordable, accessible and appropriate digital financial solutions that improve the financial health of underserved communities in emerging markets.
It also aims to fill important gaps in the innovation ecosystems across emerging markets, including lack of patient capital to test and iterate products in-market, lack of skill sets to rapidly build viable solutions for underserved customers and lack of personal connections with global and local investors and corporate partners.
Underserved communities in emerging markets are the most vulnerable and exposed to the impact of climate change, though they contribute the least to harmful emissions.
These populations tend to rely on the physical environment for their livelihoods and domestic food consumption, are more likely to live in climate disaster-prone areas and have more of their wealth in physical assets prone to destruction during climate-related disasters.
It was noted that with worsening climate change, households and small businesses will be further pushed back into poverty and worsen their helplessness.
In order to fulfil its aims, the Catalyst Fund Inclusive fintech program welcomes PayPal as a new supporter as it explores the role digital finance can play in enabling climate resilience with select companies over the next two cohorts.
PayPal is now added to the existing supporters, UK Foreign, Commonwealth and Development Office (FCDO) and JPMorgan Chase & Co.
Remarking on the new support investor, the Managing Director (MD) of Catalyst Fund, Mr Maelis Carraro expressed his excitement and announced an additional focus on digital finance solutions for climate resilience.
He said, “Climate change is already severely impacting low-income populations in emerging markets, who lack financial safety nets to cope with these additional shocks.
“Digital finance can be a game-changer in enabling climate resilience solutions to better reach vulnerable populations, as we’ve already seen the ways in which it can enhance the breadth, depth, and affordability of solutions across industries. We look forward to exploring this space and continuing to build the resilience of vulnerable populations across emerging markets via fintech innovation, with the invaluable support of PayPal, JPMorgan Chase, and FCDO.”
Other companies, including a Nigerian own firm, Crop2Cash were also announced to join the ninth Inclusive Fintech cohort. They were added to Catalyst Fund’s existing portfolio of 45 companies.
Crop2Cash is set to unlock affordable financing for smallholder farmers and provides digital finance solutions along the agriculture value chain, increasing efficiency and productivity.
The other companies include HealthDart from South Africa, Kazi from Kenya, Ohm Mobility of India, PocketFin also from India, Verqor from Mexico.
For the purpose of accelerating the new inclusive Fintech startups, including others in the Catalyst Fund’s portfolio, the program offers a combination of catalytic grant capital, bespoke venture-building support from BFA Global, and direct connections with investors and corporate innovators that can help them scale.
To date, Catalyst Fund has raised more than $247 million in follow-on funding and reached over 6.5 million low-income customers. Startups in this cohort were approved by Catalyst Fund’s Investor Advisory Committee (IAC), comprising experienced fintech and emerging markets investors, including Anthemis, Quona Capital, Better Tomorrow Ventures, Flourish Ventures, Accion Venture Lab and Gray Ghost Ventures.
