FinClub’s 1,032% Loan Boom Signals Mauritius’ Shift From Traditional Financing

FinClub, a Mauritian alternative finance platform, has recorded a staggering 1,032% increase in loans to small and medium-sized enterprises (SMEs) over the past year, signalling a growing shift away from traditional banking solutions.

The firm disbursed Rs 52.96 million (£850,000) to SMEs in 2024-25, up from just Rs 4.68 million (£75,000) the previous year.

This exponential growth highlights rising demand for alternative funding among Mauritian businesses, many of which struggle to secure financing through conventional banks.

Bridging the SME Funding Gap

Sanjay Mungur, founder and CEO of FinClub, attributed the surge to a lending model tailored for SMEs often overlooked by mainstream institutions.

“Most SMEs cannot achieve serious growth due to a lack of suitable funding options,” Mungur told Business Weekly. “We’ve designed solutions around their needs, unlike traditional banks that cater to larger corporations.”

FinClub operates a digital lending platform connecting investors with individual and business borrowers. Alongside retail lending, it has launched targeted SME campaigns and partnerships with entrepreneurial support organisations.

Digital Ease Drives Growth

Key to its expansion has been FinChat, a WhatsApp-based loan application feature, which has made financing more accessible for entrepreneurs in remote areas.

Jean-Luc Rancier, director of Lakaz Maurice Ltd, praised the platform’s efficiency: “FinClub processed our application in under a week—far quicker than traditional banks.”

Regulatory and Sustainability Questions

Despite the rapid growth, Mauritius’s alternative finance sector remains nascent, with evolving regulations and uncertainties around long-term stability.

Analysts caution that maintaining loan quality and managing default risks will be critical as FinClub scales operations.

While traditional banks still dominate SME financing, FinClub’s dramatic growth suggests a shifting landscape—one where agile, tech-driven lenders could play an increasingly vital role in bridging Mauritius’s funding gaps.

Source: Defi Media