Taxi-hailing company Yango now offers up to N750,000 in-app loan to drivers in Ivory Coast

Taxi-hailing company, Yango has announced that drivers in Ivory Coast can now access in-app loans of up to 300,000 CFA ( $500). The company disclosed this in a statement seen by Technext. According to the statement, the in-app loan is made possible through a partnership with COFINA, a leading mesofinance institution in the country and Yabx, an embedded finance platform that builds credit profiles for thin/no file customers.

Called the Driver Cash Advance service, the offering is a digital loan product that will improve access to credit for many individuals and businesses. According to the statement, drivers on the Yango platform will have instant access to up to XOF 300,000 (USD 500) cash advances. They will also be afforded flexible repayment options of over two to eight weeks. 

While Yango says the partnership is currently exclusive to its partner drivers, there are plans to expand to consumers (riders), food delivery agents and merchants.

Speaking about the projected impact of the partnership, the Country Manager of Yango in Ivory Coast, Mr Kadotien Soro, underscored the importance of enabling entrepreneurs and supporting partners’ drivers to access financial assistance to grow their businesses.

‘’We are excited to partner with COFINA and Yabx to support our community. By providing this lending service to our partners’ drivers and users, we empower them to fulfil their dreams and achieve the desired results by investing in their businesses. This is a great opportunity and I entreat all beneficiaries to take advantage of it and be diligent with the utilization of these funds in order to grow,’’ he said.

How Yango’s cash advance partnership will work

Yango prides itself on being the most trusted taxi-hailing platform in Côte d’Ivoire. The company says it handles millions of rides and deliveries each month through its partners. 

The company says the launch of the “Driver Cash Advance” service will strengthen driver engagement and enhance financial accessibility for its community. This, it says, will contribute significantly to an improved experience for all users. With a broad user base of drivers and riders growing as fast as 25 per cent year over year, Yango says the new initiative will offer drivers a seamless way to manage their cash flow and handle daily expenses more efficiently.

Yango will be embarking on this journey with Yabx, a cutting-edge Lending-as-a-Service (LaaS) platform. Yabx uses artificial intelligence and machine learning algorithms to analyze digital footprints and create detailed financial identities for borrowers without prior access to formal credit. 

By employing non-traditional methods of credit scoring and building an end-to-end loan journey on the Yango app, Yabx will enable drivers to receive cash advances in real-time.  

The embedded finance platform says it has successfully developed and implemented a diverse range of financial solutions across Africa, Asia, and Latin America. These offerings include term loans, overdrafts, microloans, handset financing, and more, tailored to drive financial inclusion and empower underserved communities.

Speaking about the import of the partnership, the Chief Growth Officer at Yabx, Puneet Chopra, said that the partnership with Yango represents a key milestone in our mission to deliver financial services tailored to emerging markets. 

“By embedding lending directly within the Yango platform, we are removing barriers to financial access, offering users quick and convenient access to capital. We believe embedded lending has the potential to transform access to credit in underserved regions and contribute to a more sustainable gig economy across Africa,” Chopra said.

Yango is also introducing the advanced cash feature in conjunction with COFINA Group, a leader in mesofinance in West and Central Africa. The COFINA Group is dedicated to promoting financial inclusion by supporting small and medium-sized enterprises (SMEs) as well as entrepreneurs in their development. 

For the cash advance project, COFINA plays a key role in providing the necessary financing, ensuring Yango drivers have quick and simplified access to credit. With its experience and continental reach, COFINA reaffirms its commitment to supporting initiatives aimed at strengthening platform economies and contributing to inclusive economic growth in Côte d’Ivoire and beyond.

Speaking about the initiative, the Managing Director of COFINA Ivory Coast, Mr Amed Sié TOURE, said it is an extension of its commitment to financial inclusion and digital innovation.

“At COFINA, we firmly believe in the power of financial inclusion and digitalization to drive innovation and support players in the digital economy. This partnership with Yango and Yabx represents a significant step forward in offering financing solutions tailored to the needs of Yango drivers. We are proud to play a role in this initiative, which paves the way for a more inclusive and resilient digital economy in Côte d’Ivoire,” he emphasized 

The integration of data-driven lending models and AI technology in the financial sector allows for the rapid expansion of financial services without adding significant risk. This innovation not only enables drivers to access formal loans for the first time but also introduces them to a simplified, streamlined user journey aligned with the driver’s immediate needs.

Through this process, individuals and little businesses, constituting the ‘missing middle’ of African ecosystems who are not the core customers of microfinance institutions or traditional banks, can be recognized as credible borrowers with legitimate credit scores.

This service is designed to enhance the financial stability of drivers, allowing them to focus on their work without financial strain. Yabx, Yango, and COFINA say they are proud to be leading the way in providing inclusive financial solutions and supporting the growth of a sustainable gig economy across Africa.  

Yango operates in over 30 countries globally including various African countries like Ivory Coast, Zambia, Ghana, Ethiopia, RD Congo, Angola, Mozambique, Cameroon, Senegal and Namibia. With an exponentially growing user base and an industry CAGR of 5.96 per cent- the scale of providing financial inclusion to previously underserved segments will only get wider.

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