THE FINTECH: BOROFREE

The world’s first interest free lender

 

About our investee

Fintech Karma’s new Borofree app is challenging the global personal finance market by offering zero interest zero fee advances to hard-pressed families.

Supported by £15million from Fortunis Capital in collaboration with other investors such as the British Business Bank Future Fund, the first-year ambition is to help 1,000,000 families escape crippling debt through £1.2 billion of recurring lending with zero charges.

Karma completed successful trials in Scotland with government support and graduated from the Financial Conduct Authority’s sandbox programme, which tests new products in a regulatory framework. 

The Problem

Half of households cannot pay an unexpected bill of £300 - while financial worries are the biggest mental health burden of Covid-19.

Existing legacy systems are complex, inefficient and undated. The Karma founders believe it is wrong that consumers pay the price for that inefficiency through unfair interest rates, whether that is bank card charges or payday loans that charge up to 1200%

Karma say: “Interest is the enemy and is not in the interest of consumers.”

The Solution

Karma’s easy to access Borofree app puts people back in control of their finances. Staff of employers who sign up can spend up to £300 of their next wage at leading retailers, in person or online. Customers pay zero interest and zero fees.

Employers who sign up benefit from increased productivity, increased staff retention and lower absence rates.

Borofree have already secured more than 60 major brands, including Amazon, Uber, Morrisons, Tesco, Currys PC World, Sky, Just Eat, John Lewis, and The National Trust.

Investee and investors benefit from the retailers paying a percentage of the sales, captured at source through the industry-changing technology

 
 

Delivering real positive change

  • In the UK alone, Karma have identified a potential customer base of 27million which includes JAMS –  ‘just about managing’ – who regularly have to borrow at high interest rates for basics such as food and heating.

  • The first-year goal of taking a million out of debt is only the start of the journey. They are leading a financial services revolution, where tech builds direct relationships between customers and retailers.

  • Karma believe they can deliver full financial disruption and full positive social impact on the scale of Apple.