“Income timing does not always match cash flow needs of wage workers, leading to them taking costly debt for their consumption needs,” Methuselah Marava, the startup’s co-founder and chief executive officer (CEO) said in explaining the need for such a platform.
“myNGOVO stemmed from me seeing how my sister struggled in paying exorbitant interest charges to loan sharks, because her employer didn’t have working capital to offer her a salary advance. On further research we realised it was a problem for many workers.”
The bootstrapped startup, which is working to raise a seed round of funding, began customer outreach in July and has already seen a positive response. It has already launched with a real estate management company and has firms from the security, hospitality and retail industries on its waiting list.
“We believe we can capture a lot of value from the Kenyan market before expanding to comparable markets in Sub-Saharan Africa,” Marava said.
myNGOVO charges an origination fee on advance payments requested through the platform, and started generating revenues with its initial launch this month.