PayingTone is a consumer digital micro credit for essential goods and services.
We launched July 2022 and we have achieved:
1,450 average active monthly consumers, 182 merchants with a total monthly portfolio reaching $26,000.
Our monthly individual ticket size averages to $18.
We have managed to maintain the NPL ratio below 2% and gearing towards profitability.
We have managed to bootstrap our costs from $63,000 we raised through family and friends as well as acceleration grants and prizes.
To cement our product market fit trajectory, we are only servicing 10% of the waitlist and have been voted the second BEST startup of 2022 in Rwanda.
Problem or Opportunity
In Africa, we have more than 400M income generating consumers with an average monthly income of $315 with screaming limited access to credit due to lack of financial history. 70% of the income usually goes into household recurring needs (food, transportation, utility, healthcare, etc..). The 44M Small and micro merchants can not afford to provide consumers products or services on credit. They do not have the required size of inventory nor the credit analysis, risk management and recovery infrastructure to provide goods and services on credit. Where does that leave Africa?
Solution (product or service)
We created a digital consumer micro credit to help income generating individual upkeep basic standard of living between when they go broke and when they get paid. By doing so, it increases access to credit of consumers and at the same time it brings the small and micro merchant on the financial grid.
We charge a monthly consumer interest rate of 8.3% and a merchant fee of 2% per transaction. Which makes it an annual percentage return of 123.6%.
Incubation/Acceleration programs accomplishment
2021 Incubation: 250Startups incubation program
2022 Acceleration: CcHub Fintech accelerator