Tanzanian fintech Settlo simplifying business success in tough markets

Dar es Salaam. At the height of the Covid-19 pandemic in 2020, Said Juma and Mohammed Awami seized the global slowdown to establish Settlo, a fintech company revolutionising how Small and Medium-Sized Enterprises (SMEs) operate in Tanzania.

The two innovators initially envisioned Settlo as a platform to facilitate SME payment settlements. Over time, the company expanded its offerings to include software and hardware solutions like Point of Sale (POS) systems, payment solutions, and online stores.

Said recalls their late-night brainstorming sessions in bars and restaurants, shaping Settlo’s vision.

Funding was not Settlo’s biggest hurdle, but the structure of startup financing in Tanzania presented challenges. Said explains that funding typically takes two to three years to materialize, a timeline too lengthy for many startups.

Despite three years of bootstrapping, Settlo managed to survive by maintaining a lean team. A pivotal $5,000 grant from United Nations Capital Development Fund (UNCDF) PesaTech Accelerator program helped propel their business forward and introduced them to potential equity investors.

The division of roles was crucial to Settlo’s early success. Said, a skilled full-stack software developer, focused on technology, while Mohammed led the business operations until his departure in September 2024.

To scale further and ensure the smooth running of its operations, Settlo recognized the need for enhanced operational oversight. This led to the strategic decision to bring on board a General Manager to provide strong leadership and guidance.

In February 2024, the company brought in Christian Sarikie, a business development expert, as General Manager to oversee operations and guide long-term strategy.

“Our mission is to empower businesses to effectively track transactions, manage inventory, streamline workflows, and set critical alerts and notifications for key individuals, such as absentee business owners. We provide comprehensive reports—both general snapshots and detailed, customized insights—to support informed decision-making,” says Sarikie

“Additionally, our platform enables businesses to run targeted promotions, reward loyal customers, and enhance customer retention. Through our e-commerce solutions, we help small businesses expand their reach while facilitating multiple payment methods.”

In August 2024, Settlo hired Peter Karanja as Chief Technology Officer (CTO) to drive product expansion. “We are currently focused on enhancing the product by adding new features and are gearing up to launch an upgraded version soon,” says Karanja.

Transforming SMEs with tailored solutions

Settlo’s journey from serving single coffee shop owners to supporting thousands of SMEs highlights its guarantee to addressing user pain points with tailored solutions. The company’s tools streamline financial transactions, improve record-keeping, and enhance productivity, making it easier for businesses to thrive in competitive markets.

“Our customers provide invaluable insights that inform our product features,” Sarikie says.

    “This allows us to design solutions tailored to user needs, enabling us to propel financial technology forward for underserved businesses.”

     Operating in Tanzania’s evolving fintech landscape presents challenges, including market saturation, low tech literacy, and infrastructure gaps. Sarikie points out the influx of substandard solutions flooding the market, leading to poor user experiences and mistrust of high-quality offerings like Settlo.

 “Tech literacy is another issue,” Sarikie adds. “Many business owners still trust pen and paper over digital solutions. To address this, we educate them on how technology can improve their operations.”

     On building a more progressive ecosystem, Settlo collaborates with other industry players such as banks to offer financial assistance and streamline payment processes for SMEs.

  “Rather than competing with banks, we share our customer database with them. They conduct credit scoring and provide loans,” explains Said.

     Settlo also emphasizes collaboration over competition. “Our approach is not to compete against others but to build better with others in the sector,” Sarikie adds.

The status of startup funding

    Looking at the wider ecosystem, Tanzania’s startup funding landscape is still in its early stages, though it has shown gradual growth in recent years. According to Africa: The Big Deal, Tanzania ranked second in sub-Saharan Africa in the third quarter of 2024, attracting $43 million in funding. However, a significant portion of this funding went to a single fintech, with nearly 100 percent originating from foreign investors.

“Settlo is one of the few startups backed by local equity investors who are committed to the long term. Their focus goes beyond immediate revenue generation to ensuring we design and build sustainable, scalable products and an enduring institution. They emphasize the importance of creating solutions that can withstand the test of time, expand features, and serve clients across diverse geographies and jurisdictions,” says Sarikie.

“This perspective challenges us to consistently deliver the best in the FinTech space. We approach the future with excitement and optimism, driven by our capability, agility, and passion for innovation, as we aim to lead the disruption in the FinTech sector in Tanzania and beyond.”

It is the loyal customer base and strong local equity investors who prioritize sustainable, long-term success over quick returns that have bolstered Settlo’s growth.

The company’s focus on innovation, customer feedback, and a dedicated team keeps it poised for continued expansion.

“We look to the future with excitement and optimism,” Sarikie says. “Our capability, agility, and passion for innovation drive us to disrupt the fintech space in Tanzania and beyond.”

Settlo’s co-founder, Said, approaches the company’s expansion with caution. He highlights that the biggest challenge the fintech currently faces is managing the growing influx of customers while maintaining the same high standards of service delivery.

As Tanzania’s fintech space continues to evolve, disruptive innovations such as Settlo provide room for collaborative efforts with other players in established key industries such as banking and telecom, helping improve customer experience, foster partnerships, and streamline business operations.