Tix Barbershop stands on the settlement of Mwimuto, about half an hour's drive from the Kenyan capital of Nairobi. It is a small locale, just another one of Mwimuto's myriad of independent businesses lining up the bustling streets.

Despite its modest size, Tix Barbershop thrives thanks to the owner's dedication and passion for barbering. Tixx, once an employee in another barbershop, saved diligently with the dream of opening his own. That dream materialised into Tix Barbershop, which started humbly with limited furniture and a single staff member. Five years later, micro loans have transformed it into a modern facility with three walk-in stations. Locals now enjoy stylish haircuts and friendly chats with the lively owner.

Tixx recognises that 4G Capital, a fintech lender, was instrumental in transforming the business by providing access to these micro loans. Such transformation illustrates the potential of Fintech Lenders to fuel the growth of micro, small and medium enterprises (MSMEs). Through technology, these innovative lenders aim to reduce risk and create opportunities where traditional banks falter.

RealFi’s impact

RealFi provides a suite of tools that enables investors to discover and evaluate fintech lenders such as 4G Capital that support micro businesses such as Tix Barbershop.

Founded in 2013, 4G Capital lends to micro-enterprises in Kenya and Uganda's informal sectors, which make up over 85% of both countries’ economies. Women in rural areas comprise over 80% of its customers, with 72% being repeat borrowers.

In Tixx's case, 4G Capital enabled him to expand his barbershop, purchase new equipment, and hire additional staff. This expansion not only improved his livelihood but also that of his community through job creation, demonstrating the ripple effect of targeted financial support.

Small-scale entrepreneurs often don’t have access to funding from traditional banks due to perceived risks and lack of collateral. Fintech Lenders such as 4G Capital bridge this gap by leveraging data analytics and technology to assess, manage, and help build small businesses’ creditworthiness.

RealFi then leverages data science and predictive analytics to provide data about entities such as 4G Capital and the aggregate opportunity of the small businesses they deal with. This creates a high degree of transparency for investors interested in providing capital to fintech lenders and provides them with an edge in analysing and building an appropriate investment instrument.

Tixx’s case study showcases his journey, from struggling to secure a bank loan to thriving with the help of 4G Capital and RealFi. His story exemplifies how innovative tools foster economic growth and social impact in regions where financial inclusion remains a challenge.

Financial inclusion

Tixx's success story is just one of many that fintech lenders such as 4G Capital are working day in and day out to realise. This end-to-end model provides a compelling reason to use a platform like RealFi to compound these gains. By utilising RealFi, investors can contribute to a system that seeks to offer returns and drive meaningful change in communities. The platform's transparent and efficient data collection process builds confidence in fintech lender operations and provides the tools to monitor how investments reach deserving entrepreneurs.

RealFi's commitment to empowering small businesses and fostering economic development through innovative lenders positions it as an essential player in the fintech landscape. By seeking to fill the void left by traditional banks, RealFi paves the way for a more inclusive financial ecosystem, benefiting lenders, entrepreneurs, investors, and communities alike.

RealFi’s potential

RealFi’s ability to provide data and decisioning tools to investors, helping them understand and support fintech lenders such as 4G Capital, transforms entrepreneurs’ lives and stimulates local economies. As RealFi grows, its impact will undoubtedly extend, creating more success stories.

Get in touch with RealFi today to learn about how you can help RealFi achieve its goal of bridging the financial inclusion gap.