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Ethiopian startupeQubis the succeeder of the fintech pitch - off at 4YFN 2024 , Mobile World Congress ’ startup event . TechCrunch was on the primer coat in Barcelona to meet its stage business development lead Nahom Michael this week .
The startup ’s name is anAmharic wordreferring to a local form of compeer - to - peer credit , Michael articulate . An Equb is a group of the great unwashed who join forces to save money , which is then stagger on a rotating basis .
lie with as a rotate savings and credit tie-up , orROSCAS , this financing modality is common in many country , especially across Africa , where it is used both for personal and for line of work loans ; but it has yet to enter the digital age .
That is the opportunity that eQub wants to tap . Starting with an app , it targets user among the get numeral of Ethiopians who have bank account and wandering phones , but special access code to credit .
Making an Equb digital is an improvement in itself : For eQub members with money box accounts , they can add money without having to go to an ATM . For eQub administrators , it also mean not take to deal with mass of cash .
Convenience aside , eQub ’s detail scheme is also a way for users to build credit entry history by demonstrate that they are reproducible recoverer . In the longsighted run , it could help eQub spread out into BNPL , regular loans and more ; but for now , it is baffle to the original ROSCAS model : no collateral and no interest . Instead , it arrive at money by charging a transaction fee when money gets taken out .
In the grip coast of its pitch , Michael tell the panel and audience that the app had appeal some 25,000 users since its launch , translating into 200 saving group . He also showed TechCrunch that the app pay user two options : Either connect an be mathematical group , or join a curated one bring forth by the inauguration .
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In both cases , eQub is taking measures to check that savings are secure . For ego - managed groups , it does detailed KYC , which is already more than traditional , offline Equbs . This makes sense : these people usually share personal ties , which is n’t the sheath with curated eQubs .
But , Michael explained to TechCrunch via text , requirements “ become rigorous ” for such groups , “ include Digital National ID , Employment letter or business permit for proof of consistent income , 3 – 6 months bank statement , a digital understanding is also sign up that reserve us ( eQub ) , to pursue legal action mechanism in case of such example . ”
Michael said that the startup now has more than 10 banking partners , an access that can also help limit hazard thanks to data share-out . There could be more to descend : “ recently , Michael said , “ policy companies have offered to create a particular limited insurance policy for saving groups where default occur due to the end of an eQub appendage . ”
In improver , the inauguration has 20 incarnate partner as part of its B2B2C strategy : If employees of a fellowship already take part in Equbs , the app now gives the employer a way to make this digital .
One of its next target area will be gig workers , a major portion of the men in sub - Saharan cities . eQub hopes to reach 1 million of these users by 2025 . But while there ’s build - in virality to the app , fast maturation will require more marketing , which is one of the reason why the company is seeking to raise a $ 500,000 pre - seed unit of ammunition . The visibility it got at MWC may help it with this , but also with another goal : expanding into other country in the near future .
