June 20, 2023
by In a significant development for Kenya’s small and medium-sized enterprises (SMEs), Pezesha, a leading African fintech platform, has joined forces with Kyosk App, a digital commerce and inventory management solution. This collaboration aims to empower merchants across Kenya by providing them with much-needed inventory credit, helping to fuel business growth and economic development.
The Challenge Faced by Merchants
Access to affordable credit has long been a challenge for SMEs in Kenya. Many businesses struggle to secure the necessary working capital to maintain inventory levels and expand their operations. Traditional lending institutions often require extensive collateral and impose stringent lending criteria, leaving numerous entrepreneurs with limited options. As a result, countless promising ventures fail to reach their full potential due to inadequate funding.
The Pezesha-Kyosk Partnership
Recognizing the pressing need for accessible financing solutions, Pezesha and Kyosk App have united their expertise to address this funding gap. Pezesha, a champion of financial inclusion, specializes in leveraging technology to extend credit to underserved entrepreneurs in Africa. Kyosk App, on the other hand, offers a user-friendly digital platform for inventory management, sales tracking, and other essential business functions.
Through their partnership, Pezesha and Kyosk App aim to streamline the credit application process for merchants using the Kyosk platform. Integrating Pezesha’s credit assessment algorithms with Kyosk’s data analytics capabilities enables real-time evaluation of merchants’ creditworthiness, leading to faster loan approvals.
How It Works
The collaboration allows Kyosk App users to seamlessly apply for inventory credit from Pezesha directly within the Kyosk platform. Merchants can submit their loan applications by providing essential business information, such as sales data, inventory turnover, and transaction history. Leveraging advanced data analytics, Pezesha assesses the creditworthiness of applicants based on various parameters, including revenue trends and customer ratings.
The integration of the two platforms simplifies the loan application process and provides merchants with timely access to funds. Upon approval, merchants receive their credit in their Pezesha wallet, which can be used to purchase inventory from Kyosk App’s vast network of suppliers. This eliminates the need for physical collateral, reducing the barriers traditionally associated with securing credit.
Benefits for Merchants
The collaboration between Pezesha and Kyosk App offers numerous benefits to merchants:
- Access to affordable credit: SMEs can access inventory credit quickly and at competitive interest rates, enabling them to maintain optimal stock levels and meet customer demand.
- Streamlined operations: Integrating inventory management and credit services simplifies daily operations, reducing administrative burdens and enabling merchants to focus on business growth.
- Data-driven decision-making: The partnership leverages advanced data analytics to give merchants valuable insights into their businesses, facilitating informed decision-making and improved profitability.
- Enhanced competitiveness: With better access to inventory credit, merchants can expand their product offerings, improve customer service, and compete more effectively in the market.
- Building credit history: Successful repayment of loans through Pezesha helps merchants build a credit history, improving their future access to financing options.
The collaboration between Pezesha and Kyosk App marks a significant step forward in addressing the credit challenges faced by Kenyan SMEs. By combining their strengths in digital lending and inventory management, the partnership empowers merchants with the necessary financial resources to expand their businesses and contribute to Kenya’s economic growth. This innovative approach sets a positive example for other fintech and technology-driven collaborations that can further strengthen Africa’s entrepreneurial ecosystem and foster economic inclusivity.
