This funding agreement falls under Algorand’s impact category, which identified FlexID as a driver of global financial inclusion.
According to an announcement, Algorand, a Proof-of-Stake (PoS) block chain protocol, has invested an undisclosed amount in FlexID to expand its Self-Sovereign Identity (SSI) platform.
FlexID is a digital identity platform that intends to make its decentralized digital identity network available in emerging markets. As a result, the company hopes to assist over 1 billion people who lack formal identification. This is FlexID’s first funding agreement.
FlexID, founded by Zimbabwean serial technology entrepreneur Victor Mapunga, aims to reduce financial exclusion. Mapunga developed the platform in response to frustrations with the banking system, which excluded people without identification documents.
The Algorand funding falls into the impact category, with FlexID identified as a catalyst for global financial inclusion. FlexID intends to begin by assisting 400 million Africans who are unable to access banking services due to a lack of identity documents.
According to Mapunga,
“Identity is foundational to modern-day commerce. Without an ID, one cannot participate in the economy even at the most basic levels such as access to basic telco services, mobile money and banking.” He went on to say that not having an ID also limits access to education and healthcare. Furthermore, most national records are disorganised, increasing business costs. FlexID, on the other hand, offers a solution for integrating the informal sector into the formalized economy. Mapunga praised the platform, claiming that farmers can easily access credit and inputs.
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