Mongolian fintech startup AND Global raises $5m, aims to expand across Asiahere)
Mongolian fintech startup AND Global has raised $5 million in an angel investment round which will enable it to expand its reach as a microlender, according to the company announcement on October 12.
The multi-million investment round – backed by existing backers from Mongolia and Japan – perhaps makes AND Global by far the most successful startup in the country’s nascent startup ecosystem.
The post-money valuation of the fintech startup is said to be $30.8 million.
ANG’s platform named LendMN was launched this January to address the informal and fragmented lending sector.
“We’re creating the first globally recognized Mongolian brand since Chinggis Khan (founder of the Mongol Empire), and we’re doing it by offering people convenient, fast, collateral-free loans that they can afford to pay back,” said Anar Chinbaatar, founder of AND Global.
“Mongolia is more than just an ideal test bed for LendMN, it also provides the talent we need to build a globally-scalable AI-based fintech company.”
The fintech company allows both banked or unbanked to access micro loans through their smartphones in only five minutes. To date, the star-up has extended loans worth $1.9 million in the mineral exporting country with a population of 3 million. The startup enjoys repayment rate of 98.5 percent.
The latest investment will allow AND to expand its personal micro loan portfolio as well as interest-free product purchase financing.
The fintech startup is also looking at expanding across Asia and Central Europe. “There is enormous interest in piloting AND’s platform in Cambodia, Indonesia, Pakistan and the Philippines,” stated the announcement.
Its behavior-based monthly fee is set on proprietary AI-based algorithms by assessing the borrower’s social media activities and other information.
AND’s monthly fees can drop down to 3 per cent, significantly undercut the annual interest rates offered by banks and the 10 percent per week rates charged by loan sharks.
Prior to the latest seed round, it received $1 million pre-seed round from the same investors who decided to contribute to the latest investment.
AND Global, that hit the market in 2015 was previously known as AND Systems, founded by serial entrepreneur, Anar Chinbaatar, who also established G-Mobile, Mongolia’s fourth largest telecom player.