Fairlo raises SEK 7 million to give the power back to the borrowers
The fintech company Fairlo wants to help people solve unexpected everyday expenses while maintaining control over their loans. The company has now raised SEK 7 million for expansion of the service offering with the aim of contributing to an economically inclusive world.
Founded by the brothers Jimmy and Shamon Hanna, Fairlo has developed a platform to provide financial, humane services that strengthens the individual.
Their first venture, the “New Everyday Loan”, gives private individuals the opportunity to immediately resolve an unexpected expense while retaining power over the loan. They do this by allowing the borrowers to change the amortization plan according to the current life situation, pay any chosen amount or terminate the entire loan with one click – 24/7 and without fees.
The next step is to make it possible for the borrower to have the monthly amount automatically transferred to a savings account after the loan has been paid. In this way, a savings buffer is built without any adjustments, behavior change or other thresholds.
– More and more people live from month to month without the possibility of building a buffer, and that trend is increasing. In Sweden, there are over two million adults who cannot cope with an unexpected expense of SEK 15,000. Just because people are in a sudden need of money, we do not think they should get stuck with expensive, non-flexible and inhumane loans, says Shamon Hanna, co-founder and CMO at Fairlo.
Hanna got the idea for the company during his MBA studies in the US when he worked on a project on how unexpected expenses affect private individuals. Fairlo was launched in April 2018 and today over 800 people have already used Fairlo. Last year, the team doubled in size and even this year they expect to expand the team and to double the number of customers to 8,000.
The investor group includes Anders Göransson (Soläng Invest), Boel Swartling (business angel with a focus on sustainability), Helena Westin (board pro and brand guru) and Georg Rydbeck (Klarna). Saminvest also participates in the issue through co-investment agreements with Boel Rydenå Swartling and Soläng Invest. This is the first time the co-investment agreement is utilized, making the investment historic.
– Fairlo is a perfect example of how technology together with good entrepreneurial spirit can pave the way for responsible financial services. A little extra fun with this investment is that, thanks to the matching with Saminvest, I can double my investment volume, which is to the benefit of both Fairlo and us investors, says Anders Göransson, who through Soläng Invest leads the round.
– I like companies that make a difference. Fairlo goes in and challenges an industry where greed has long been a winning concept, says Helena Westin.
– We are extremely happy and grateful for the support we received in our first external financing. It is an acknowledgment that Fairlo has an attractive solution to a major problem. The future of financial services looks bright and we want to be at the forefront of the development of new, human, financial services, says Jimmy Hanna, co-founder and CEO of Fairlo.
Last fall, Fairlo was selected for the Sting Accelerate program and has been named the hottest fintech startup of the year by Sting. Last week, Fairlo was also one of two companies named to have given the best pitch of 18 exciting companies on Sting Demo Day.
– Fairlo’s journey has only just begun and with this fantastic support we are further accelerating development. More good news is promised during the year, says Jimmy Hanna.