PayJoy secures $26 million debt facility from Lendable to boost smartphone financing in Mexico
Mexico City PayJoy, a leading provider of financial solutions to under-served customers in emerging markets, has raised a $26 million debt facility from Lendable Inc. The financing will be used to expand its lending operations in Mexico.
Founded in 2015 and based in San Francisco, PayJoy utilizes a patented mobile locking technology to enable people worldwide to purchase new smartphones on installment payments and to get access to cash loans using their smartphones as collateral. PayJoy has been working in Mexico since 2016, partnering with phone manufacturers and retail merchants to make the purchase of a smartphone widely accessible. In support of this mission, the company has raised over $70 million of capital and is backed by leading venture capital firms including Union Square Ventures and Greylock Partners. Beyond Mexico, the company serves customers in Africa, Indonesia, and India.
Suresh Samuel, Head of Origination at Lendable, stated “As Lendable continues to expand the countries we work in, we are very excited to support PayJoy for our first transaction in Mexico. We have been financing Pay As You Go Technologies in Africa since 2016 and this was a unique opportunity to apply that knowledge to a new market. In PayJoy, we have a partner aligned with our belief in the importance of accelerating access to financial services for under-served communities globally. PayJoy’s mobile device financing product has realized exceptional growth and performance, and demonstrates the important role smartphones have in acting as an enabler of communication, commerce, and digital financial services. We could not be more excited to be supporting PayJoy in furthering this mission.”
Brad Pennington, PayJoy’s President of Financial Products, stated that: “PayJoy is very excited to partner with Lendable in Mexico and beyond. We are excited to have a partner who shares our vision that everyone on the planet should have access to high quality digital financial services.”
PayJoy’s mission is to make smartphones affordable worldwide through a unique technology that enables people who lack credit to purchase their first smartphone on a weekly or monthly installment plan. Today, PayJoy’s secure locking technology and proprietary data science deliver affordable smartphone financing to millions of under-banked users worldwide. PayJoy maintains the long-term goal of reaching 1 billion people in emerging markets.
Lendable is the leading debt provider to fintech companies across emerging and frontier markets. Founded in 2015, the company has an active portfolio of debt financing investments in fintech companies across Africa, Asia and Latin America. Lendable works with fintechs including asset financing companies, digital payment providers, off-grid energy companies, MSME lenders, consumer lenders, and digital marketplaces. The transaction was funded by SIV 1, a Lendable managed private credit vehicle aimed at Institutional investors. For more information go to www.lendable.io.