Richard Machomba

Richard Machomba remembers vividly the struggles his mother faced to put him through school. “The lack of financial means was a constant worry, and my mother had cracked it,” he says, reflecting from his Nairobi office. Back in the day, Richard’s mother didn’t know that the saving mechanism she used to get him through school would become the seed of an idea that’s transforming lives across Kenya – and eventually Africa.

About 20 years later, when Richard set out to buy a laptop, he experienced first-hand the benefits of the mechanism his mother had used. He stumbled upon a store offering a deposit-based payment plan, where he could gradually pay off the laptop over three months. The twist? He wouldn’t receive the laptop until the final payment, essentially turning it into a savings scheme.

However, the merchant was using a manual, paper-based process to facilitate Richard’s payment that was prone to errors. Richard, seeing the potential but recognizing the flaws, joined forces with Johnson and Moses in 2017. Together, they created a digitized solution for the problem – FlexPay.

FlexPay is the exact opposite of your typical “buy now, pay later” (BNPL) service. It’s the digitization of the tried and tested  “layaway” mechanism used traditionally in many parts of East and West Africa. Richard, along with his co-founders Johnson Gituma and Moses Gathecha, identified the gap in the market, where people like Richard aspired to own products and services that would provide them with a better life, but lacked the upfront capital or access to traditional credit facilities.

The opportunity is uncanny: Africa’s retail market is growing fast, and hundreds of millions of people on the continent still remain unbanked.

FlexPay’s user-friendly app empowers users to save towards their goals. Customers can easily track their payment progress and make secure online payments for their desired products, offered by a network of over 600 partnered merchants. These merchants, predominantly in the retail sector, benefit from increased sales by converting foot traffic into paying customers and having a safe, digitized way of tracking their layaway transactions.

And it goes beyond just retail. The company is currently partnering with hospitals, insurance providers, and even schools, offering programs to – for instance – enable expecting mothers to save for pre- and post-natal care services.

Unlike traditional BNPL options that can lead to debt, FlexPay encourages responsible saving habits, while catering to the vast unbanked population in Kenya to provide a safe and convenient alternative to predatory lending practices. Customers benefit from flexible payment options and potential discounts, while merchants gain increased sales and a wider customer base. As Richard aptly says: “People are always pushed to obtain credit. We help them avoid that.”

The founding team has just what it takes to succeed in this realm. Richard has more than 10 years of diverse experience in FinTech, entrepreneurship, developing, scaling startups and building innovations across Africa. Johnson is an engineer by trade, having built emerging market ventures, while Moses is a computer scientist specialized in database management, digital and mobile payments, as well as software development.

Together, the team has acquired over 200,000 satisfied customers, with ambitious plans to expand across Africa.

“FlexPay is paving the way for a future where financial limitations don’t hinder dreams, led by a very ambitious and well-rounded team,” Managing Partner at Acasia Ventures Aly El Shalakany says. “Predatory lending is a real and present danger for millions of Africans with no access to credit. FlexPay offers a compelling alternative that encourages people to save in order to buy the things they want. The world needs more FlexPays!”