Startup profile: Fairlo - an easy, no-collateral way to get small financial loans.

Sweden 04 October 2018
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Nordic 9 publishes periodically profiles of interesting and promising startups from Scandinavia. Do you know or have an interesting startup you think we should consider? Let us know.

Fairlo was founded in 2016 and developed a financial service platform that provides easy access to small consumer loans, between SEK 2k and 10k. The company was recently accepted as part of Sting's Accelerator program, based in Stockholm, Sweden.

What are the names of founders, their management roles, and how many full-time paid employees do you have?

Jimmy Hanna CEO
Shamon Hanna CMO.

We have also had a full time Fullstack developer for two years. We will become 4 core team members by end of year.

Do you have external funding or are you bootstrapped?

So far, we as founders have financed Fairlo with both our own time and capital. After the summer we got accepted to the well known Accelerator Sting and got an investment from Propel Capital. And now we are planning for our first external financing round.

What problem do you solve and for what industry?

Fairlo is a fintech startup that launches a new era for small loans. With a system based on the latest technology, Fairlo offers people the opportunity to solve an unexpected expense with a small loan at equal terms.

Whoever borrows from Fairlo owns the power and can at any time change the amortization plan, pay in any amount or just pay off the whole loan, all in one click and free of charge. Negotiate with your self, you now own your loan.

How do you make money, what is your business model?

We have built our financial platform from scratch and with the latest philosophy and technology. We handle a loan application and the loan lifecycle in a totally new way.

This has given us the opportunity to build services that are highly automated and highly cost efficient. Therefore we never add any fees and solely make our profit from the interest rate, that is still lower than the interest rate of other small loan services.

Why do you think the value you're creating is so important that customers are willing to pay for your solution?

The need to solve an unexpected expense is a very real phenomena and it can be very challenging to solve it. There are unfortunately not many options out there that are fair, user-centric and easy to use. They often come with strings attached and/or very high fees.

We are changing the way people solve their unexpected expenses. For the first time in history people can solve it in real-time with Fairlo and know they are entering a fully flexible and no-strings attached loan.

All customers at Fairlo owns the power and can at any time change their amortisation plan, change due date, pay in any sum or pay off the whole loan, all in one click at any time and free of charge.

Do you have paying customers or some sort of external validation?

We launched Fairlo in Sweden in April 2018 and we are overwhelmed by the traction and momentum that we have gained since then. Our users love the product and already more than 600 people has used Fairlo to solve an unexpected expense. We are now scaling up in Sweden and also preparing for global expansion.

Who is your local and international competition?

We are pioneering a new era for small loans and at this moment we do not have a competitor providing small loans in the same way as Fairlo. Our current competitors are rather payday loans both locally and globally. Their users are our first customers. Also Bynk is trying to do similar things but for bigger loans.

What is the biggest challenge you need to solve in the next few months?

Finding and attracting great talents to grow our team.

Why should anybody join you?

As part of the Fairlo team, you will be part of a young an dynamic team that loves working together and are committed to contribute to a brighter and better tomorrow for everybody (financially). As we are a small and growing company, you will have a great opportunity to shape your role and responsibilities. Our office is located at A house and you will be part of a vibrant startup environment.

Are you looking for external funding? How much and for what?

We just started the process of talking to investors for our first external financing round. We will raise capital for technical development and marketing for the expansion of Fairlo.

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