EN press releases 2024 Archives - Gojo & Company, Inc.

December 23, 2024

Gojo enters Georgia with investment in Credo

Gojo & Company, Inc. (“Gojo”) is pleased to announce its first venture into Georgia with the acquisition of 16.8% stake in JSC Credo Bank (“Credo”), the country’s fifth-largest commercial bank. Credo transformed from a microfinance organization into a full-fledged bank after obtaining a banking license in 2017. Gojo will support Credo to continue pursuing its mission of supporting Georgia’s micro, small and medium entrepreneurs and their employees to create a better future by offering affordable financial services.

Credo offers a comprehensive suite of banking products and services through both traditional and digital channels. As of December 2023, Credo managed a total asset of approximately 2.5 billion Georgian Lari (USD 918 million). By tailoring its offerings to the seasonality of businesses, Credo effectively supports predominantly rural entrepreneurs who often lack access to financial solutions and are underserved by traditional banks. Credo’s business and retail loans, installment loans and deposit products further empower clients to build financial resilience. The convenience of credit and debit cards as well as daily banking ensures Credo’s clients have easy access to funds and seamless transactions.

Zaza Pirtskhelava, Chief Executive Officer at Credo, said, “It is with great pleasure that I welcome Gojo as a new shareholder. Their involvement will significantly strengthen Credo Bank’s positioning and reinforce our goal of providing sustainable financial services to micro, small and medium-sized entrepreneurs with a special focus on digitalization and innovative product delivery. This landmark transaction underscores our shareholders’ trust in the bank and its potential as a solid foundation for our future growth, while advancing financial inclusion, positive environmental and social impact.”

“We are delighted to partner with Credo to advance our shared mission of accelerating financial inclusion worldwide. Credo has been instrumental in expanding access to financial services in rural Georgia, and we look forward to supporting its continued growth and development.” said Taejun Shin, Founder & CEO at Gojo.

PwC Georgia acted as the legal advisor for this transaction.

Woman in Georgia who runs a poultry farm with funding from microcredit / Taejun Shin

About JSC Credo Bank

Credo is the fifth-largest commercial bank in Georgia. With its wide regional outreach through 94 service centers, it offers fully-fledged and innovative banking services to over 480,000 customers. The bank’s mission is to support Georgia’s micro, small and medium sized entrepreneurs and their employees to create a better future by offering affordable financial services. It is owned by international social impact and development finance institutions such as Access Credo GmbH from Germany, funds managed by Triodos Investment Management BV from the Netherlands, Development Finance Institution Proparco (Groupe Agence Française de Développement) from France and now Gojo & Company, Inc. from Japan.

About Gojo & Company

Gojo is a Tokyo-based holding company of inclusive financial service providers operating in 13 countries in Southeast Asia, South Asia, Central Asia & the Caucasus, and Africa. Gojo was founded in 2014 to extend financial inclusion across the globe. Gojo Group including major investees is serving more than 2.4 million clients across the globe, through over 10 thousand group employees as of March 2024.

Published by Gojo in EN press releases, EN press releases 2024, Press releases

November 14, 2024

Gojo strengthens corporate governance by welcoming three new Outside Directors and appointing Managing Partners

Almira Zejnilagic, Kshama Fernandes and Akira Kawashiro joined Gojo as Outside Directors
Gojo & Company, Inc. (Gojo) is pleased to announce that three new members - Almira Zejnilagic, Kshama Fernandes and Akira Kawashiro - have joined Gojo’s board as new Outside Directors. As a result, our Board of Directors now has eight members, seven of whom are Outside Directors, and the ratio of female directors is 50%, further strengthening our governance and diversity.

Almira Zejnilagic (Outside Director)
Almira has two decades of experience in risk and crisis strategy management, serving as an advisor, board member, and senior executive, with extensive experience on investment committees. Most recently, she held a senior role in a global, fast-growing Web3 financial services company. Prior to that, she was a Partner at FTI Consulting, where she spent a decade building and leading the Global Risk and Investigation practice across Europe, Central Asia, and Africa. Almira is also recognized as a Young Global Leader by the World Economic Forum.

Kshama Fernandes (Outside Director)
Kshama is a leading figure in the Indian financial markets and in the field of impact investing. She also serves as the Vice Chairperson of Northern Arc Group, a prominent finance company that connects underbanked institutions and businesses with capital markets investors. Kshama brings to Gojo’s board three decades of expertise in capital markets, risk management, and structured finance, with the last 15 years focused on promoting financial inclusion in India.

Akira Kawashiro (Outside Director)
Akira Kawashiro is an attorney qualified to practice both Japanese law and Illinois law, currently serving as a Partner at Southgate, a law firm in Tokyo. His practice primarily focuses on domestic and cross-border mergers and acquisitions (M&A), venture capital investments, and securities regulations. He has also been seconded to the Tokyo Stock Exchange, and has a deep knowledge of disclosure regulations.

Kshama Fernandes, one of the newly appointed Outside Directors, says “I am indeed very happy to be joining the board of Gojo as an Outside Director. The company’s mission of extending financial inclusion across the globe is truly inspiring and resonates deeply with my personal goals and aspirations. Finance can be used as a powerful tool to help the underserved take control of their lives and chart their own destiny. I have witnessed this first hand through my work at Northern Arc Capital in India. It is only when we put the best minds to work on the biggest problems facing the world, that we will make sustainable progress. I am delighted to continue this journey of financial inclusion with a group of highly committed and a widely talented team at Gojo”.

Gojo extends a warm welcome to Almira, Kshama and Akira and looks forward to accelerating financial inclusion further!

Sanjay Gandhi and Kohei Katada appointed as Managing Partners
Gojo has appointed Sanjay Gandhi, founder & Chief Investment Officer, and Kohei Katada, Chief Financial Officer, as new Managing Partners ("Shikko-yaku", under the Companies Act in Japan).

Sanjay Gandhi (Managing Partner & CIO)
Sanjay Gandhi has been leading Gojo's investments for ten years. Sanjay is a qualified Chartered Accountant and joined the microfinance industry in 2003. He conducted 125 MFI ratings & assessments in 29 countries and approved more than 400 MFI Rating reports. Some of the assignments were for the World Bank, ADB, UNDP, Cordaid, and Mercy Corps.

Kohei Katada (Managing Partner & CFO)
Kohei Katada has been leading Gojo’s fundraising efforts since 2019, bringing with him over 20 years of extensive experience in finance and corporate management. He began his career at Morgan Stanley, followed by a tenure at Och-Ziff Capital Management. In 2012, Kohei successfully led the IPO of LIFENET INSURANCE. Later, as Senior Vice President of Finance at SmartNews, he was pivotal in both fundraising and the establishment of essential corporate functions.

Kohei states, “Since joining the company in 2019, I have embraced numerous challenges in fundraising as CFO while dedicating efforts to building a strong foundation for sustainable growth through enhanced governance and internal controls. I would like to take this opportunity to express my heartfelt gratitude to the many shareholders and lenders who have supported our growth. Moving forward, I will continue to advance step by step toward our vision of becoming the private sector version of the World Bank, with the steadfast support of our dedicated team members from around the world. I look forward to your continued support and encouragement as we strive for further progress”.

Arnaud Ventura appointed as Representative Executive Officer
Gojo has also appointed Arnaud Ventura as Representative Executive Officer (“Daihyo shikko-yaku”). Gojo now has four Managing Partners as its core executive team - Taejun Shin (Managing Partner & CEO), Arnaud Ventura (Managing Partner), Sanjay Gandhi (Managing Partner & CIO) and Kohei Katada (Managing Partner & CFO). We believe this strengthens the corporate governance structure and sustainability of the management team.

About Gojo
Gojo & Company, Inc. is a Tokyo-based holding company of inclusive financial service providers operating in Cambodia, Myanmar, Sri Lanka, India, Tajikistan, and Africa. Gojo was founded to extend financial inclusion across the globe, and its goal is to enable the provision of high-quality affordable financial services in 50 countries. Established in 2014, Gojo Group is serving more than 2.4 million clients across the globe as of March 2024.

(Added 2025/2/5) Arnaud Ventura was appointed as Representative Executive Officer, however, such appointment is not yet effective and will be effective upon completion of required procedures.

Published by Gojo in EN press releases, EN press releases 2024, Press releases

October 24, 2024

Gojo completed USD 233 million in Series F equity finance and debt finance combined to support its growth

Gojo raised USD 122 million (JPY 17.5 billion) in Series F equity financing and USD 111 million (JPY 15.9 billion) in debt from multiple lenders

Gojo & Company, Inc. (“Gojo”) is pleased to announce that we have successfully completed our Series F fundraising with paid-in capital since our establishment in July 2014 reaching JPY 46.5 billion (USD 325 million). Gojo also raised approximately JPY 15.9 billion in debt (including Syndicated Term Loan (with availability period) from six Japanese financial institutions including Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd.

Gojo closed a JPY 17.5 billion (USD 122 million) Series F Equity Financing round with our effort to actively develop new fundraising methods including private placements to professional investors and fundraising from Japanese crossover investors

Gojo has completed JPY 17.5 billion (USD 122 million) Series F financing round¹ by September 2024. In March, Gojo raised approximately JPY 5.0 billion from mainly individual investors in Japan through a private placement to professional investors through J-Ships², which is part of this Series F financing.

Gojo was selected as the first equity investment to an unlisted company by crossover funds³launched by leading Japanese institutional investors, Asset Management One Co., Ltd ⁴., and Rheos Capital Works Inc.⁵ as well as Sumitomo Mitsui Trust Asset Management Co., Ltd.⁶

In addition, we are pleased to welcome new institutional investors including International Cooperation and Development Fund, a Taiwanese dedicated official foreign aid organization, Hungchi Capital Co. Ltd, a Taiwanese impact venture capital focus on sustainability and climate solutions, HiJoJo Partners Inc., an independent investment management company focusing on domestic and international middle and late stage investments, the impact investment division of Sumitomo Mitsui Trust Bank, Limited, Daiwa House Ventures Co.,Ltd., Fujitsu Ventures Fund LLC, Iwagin Mirai Investment Co.,Ltd., The San-in Godo Bank, Ltd., NOW, Inc., ABF Capital, Inc., as well as individual investors. We also received additional investments from existing shareholders, ACA Investments Pte. Ltd., MARUI GROUP CO., LTD., CAPITAL X,Inc., HFA Capital Co.,Ltd., QR Investment Co., 15th Rock Fund II LPS, SAMURAI INCUBATE INC., and GMO VenturePartners,Inc., and DIMENSION, Inc.

With our cumulative Series F financing amount, we are strengthening Gojo’s financial foundation, investing in further growth of group companies, particularly in India and Tajikistan, as well as investing in financial service providers in Asia and Africa. As part of this, we announced entry into Africa through an investment in Baobab Group, one of the major pan-African microfinance groups.

Gojo raised approximately JPY 15.9 billion (USD 111 million) in debt and diversified debt financing methods

Gojo has been working to diversify debt financing methods and optimise funding costs in parallel with equity financing. As a result, we executed JPY 4.0 billion (USD 30 million) Syndicated Term Loan agreements (with availability period) with Sumitomo Mitsui Banking Corporation as arranger and agent, the Hokkoku Bank, Ltd. and Higashi-Nippon Bank, Ltd. as participating banks in March 2024. In April, Gojo also raised JPY 1.0 billion (loan term: 3 years) from Mizuho Venture Debt Fund Investment Limited Partnership managed by Mizuho Capital Co., Ltd. through the underwriting of unsecured straight bonds. In August, we raised a term loan of JPY 200 million (USD 1.4 million) and a 3-year term from THE BANK OF FUKUOKA.

Gojo directly supports the debt financing of group companies in developing countries through intercompany loans as a use of funds of the loan raised in Japan as well as strengthening the relationship between our group companies and lenders by providing numerous types of credit guarantees. In August, a Social Loan of JPY 9.0 billion (USD 60 million) and a 2.5-year loan term was executed by SMBC to Gojo’s group company in India followed by 2023. In September, a term loan of JPY 1.7 billion (USD 20 million) and a 2.5-year loan term was executed by Mizuho Bank, Ltd. to Gojo’s group company in India.

Gojo continues to work on optimising funding costs by pursuing global scale and risk diversification, building strong relationships with Japanese financial institutions and individual investors, and diversifying financing methods.

Footnotes

1. Issued Class F, F2, and F3 Preferred Shares
2. Please refer to the news release of Nomura Securities Co. for details of the J-Ships
3. Crossover investors or crossover funds refer to institutional investors that invest in both listed and unlisted equity
4. Investment through One-Premier Luxembourg Master SA SICAV-RAIF Crossover Capital Master Fund, for which Asset Management One Co., Ltd. serves as the investment advisor
5. Investment from Investment Trust managed by Rheos Capital Works Inc.
6. Investment from an investment trust (private placement) managed by Sumitomo Mitsui Trust Asset Management Co., Ltd.
7. JPY/USD=142.82

About Gojo & Company

Gojo & Company, Inc. is a Tokyo-based holding company of inclusive financial service providers operating in Cambodia, Myanmar, Sri Lanka, India, Tajikistan, and Africa with a JPY 123.7 billion Consolidated Gross Loan Portfolio. Gojo was founded to extend financial inclusion across the globe. Gojo’s goal is to enable the provision of high-quality affordable financial services in 50 countries. Established in 2014, Gojo Group is serving more than 2.4 million clients across the globe as of March 2024.

Published by Gojo in EN press releases, EN press releases 2024, Press releases

October 4, 2024

Gojo expands into Africa with investment in Baobab Group

Gojo & Company, Inc. (“Gojo”) is pleased to announce its first venture into Africa through acquiring 16.4% stake in Baobab Group (“Baobab”), one of the major pan-African microfinance groups. Baobab has presence in seven African countries, including Burkina Faso, the Democratic Republic of Congo, Ivory Coast, Madagascar, Mali, Nigeria, and Senegal. The investment in Baobab will enhance access to financial services for underserved populations, reinforcing both Gojo and Baobab’s commitment to financial inclusion.

Aligned with its mission to “accelerate the financial inclusion and sustainable growth of MSMEs (micro, small and medium enterprises)”, Baobab provides a diverse suite of financial products, from micro-loans of less than EUR 1,000 for small businesses to SME (small and medium enterprises) loans reaching up to EUR 300,000. In addition to loan products, Baobab offers savings products, payment solutions, and insurance products, enabling clients to build comprehensive financial security. Moreover, with the Baobab mobile app, clients can easily apply for digital nano-loans, transfer funds, and keep track of their loan repayments, ensuring seamless access to Baobab’s services. In December 2023, Baobab served more than 460 thousand active clients*, managing a gross loan portfolio of approximately EUR 830 million.

Philip Sigwart, CEO of Baobab, mentioned, “At Baobab Group, we are excited to welcome Gojo into our family of investors. With our shared vision and values, we are confident that together, we will drive further progress in expanding access to financial services across the African continent.”

Speaking on this investment, Arnaud Ventura, Managing Partner at Gojo, said, “Gojo's mission is to accelerate financial inclusion worldwide, therefore Gojo is pleased to be able to support Baobab to grow further in Africa in the coming years. As a long-term partner, Gojo will support Baobab’s management not only to enter new markets in Africa but also to access new sources of funding to reach out to many more clients.”

Bird and Bird acted as the legal advisor for this transaction.

* An active client is a person or a legal entity having done a transaction on a Baobab account over the last 12 months

About Baobab

Baobab is a leading financial services provider to MSMEs on the African continent. Through its seven subsidiaries, Baobab provides financial services to approximately 460 thousand micro-entrepreneurs and small businesses as of December 2023. It expands its reach to MSMEs in frontier markets by leveraging data and digital technologies, thereby fulfilling its mission of broadening access to finance among those underserved by traditional banks. Baobab’s global range of products includes micro-loans, savings solutions, and mobile payments. Baobab’s 4,800 team members work together to make financial services more accessible, inclusive and transparent.

About Gojo

Gojo & Company, Inc. is a Tokyo-based holding company of inclusive financial service providers operating in Cambodia, Myanmar, Sri Lanka, India, Tajikistan, and Africa. Gojo was founded to extend financial inclusion across the globe. Gojo’s goal is to enable the provision of high-quality affordable financial services in 50 countries. Established in 2014, Gojo Group is serving more than 2.4 million clients across the globe as of March 2024.

Published by Gojo in EN press releases, EN press releases 2024, Press releases

August 30, 2024

Gojo publishes its Impact Report (2024 August)

Gojo is pleased to announce the publication of the Impact Report (2024 August) .

Gojo’s mission is to extend financial inclusion across the globe. Through our nine group companies* in five countries — Cambodia, Sri Lanka, Myanmar, India and Tajikistan — Gojo Group encompasses 2.4 million clients as of March 2024. 96% of our clients are women, and four out of five clients live in rural areas.

In this Impact Report, we take a step back to think again about what financial inclusion really is. Gojo defines financial inclusion as “having access to useful and affordable financial services”. According to the Global Findex Database 2021, access to financial services has improved significantly, with the percentage of people aged 15 and above in developing countries who have an account with a financial institution increasing from 42% in 2011 to 71% in 2021. Therefore, the quality and affordability of financial services are becoming increasingly important. The impact of financial inclusion is another discussion point - while financial inclusion has called out for poverty alleviation over many years, the reality is that microfinance does not always lead to income increase. We acknowledge this and strive to improve our outreach and quality of the services so that we provide more choices for clients in better money management, and as a result, empower them to determine their own future.

We also shed light on the side effects of microfinance. Over-indebtedness is a situation in which a client's debts have exceeded his or her ability to repay them. The causes of over-indebtedness are complex. Clients’ income tends to fluctuate due to its informal nature and it is hard to predict over the term of the loan. It can easily be affected by unexpected incidents such as natural disasters, economic crises, pandemics, and so on. Clients sometimes need to make unwanted sacrifices when it becomes difficult for them to repay the loan. Gojo Group aims to prevent over-indebtedness through improvement of loan assessment processes and continuous monitoring, and ensure that collection practices adhere to the Client Protection Standards.

In this context, Social Performance Management (SPM) is evermore important. SPM is a framework defining responsible operations of financial service providers, ensuring no harm to clients and other key stakeholders. Following the Universal Standards of Social and Environmental Performances (USSEPM), Gojo conducts SPI audits to assess the level of SPM practices at group companies and take action to improve them. We conducted SPI audits for MIFIDA and Humo and shared the results in this report. Four out of six consolidated companies have obtained Client Protection Certifications.

Finally, there is also progress made in other areas of operation. Gojo established UNLEASH Capital Partners, a venture capital business, targeting fintech startups in India to explore financial inclusion outside of microfinance. We launched a new initiative in digital financial inclusion called the “Pasio program” which offers digital loans paired with business skill training and online e-commerce and community platform. The female ratio of Gojo members improved to 44%, and we are continuously improving our measurement of GHG emissions to have a better understanding of our environmental impact. You may also notice that throughout the report, we have included client stories which are not always success stories, with the intention of conveying the reality in the field as best we can.

We hope you enjoy reading our Impact Report.

Impact Report Webinar

Please join us for an upcoming webinar this September, in which we will share the key findings from our Impact Report. We will hold two webinars, each in Japanese and English.

[Webinar in English]

Date: Thursday, September 19, 2024

Time: 11.00-12.00 CET / 18.00-19.00 JST

Registration form: Link (prior registration is required)

[Webinar in Japanese]

Date: Tuesday, September 17, 2024

Time: 19.00-20.00 JST

Registration form: Link (prior registration is required)

We look forward to your participation.

About us

Gojo & Company, Inc. is a Tokyo-based holding company of nine inclusive financial service providers* operating in Cambodia, Myanmar, Sri Lanka, India, and Tajikistan. Gojo was founded to extend financial inclusion across the globe, beginning with developing countries. Our goal is to enable the provision of high-quality affordable financial services in 50 countries. Established in 2014, Gojo Group is serving more than 2.4 million clients across the globe as of March 2024.

*For the Impact Report, group companies include nine financial service providers (MAXIMA, Sejaya, MIFIDA, Ananya (including Prayas), SATYA (including SATYA Micro Housing), AVIOM, Loan Frame, HUMO, and MyShubhLife) including non-consolidated companies.

Published by Gojo in EN press releases, EN press releases 2024, Press releases