Jahazii: The One That Is Getting Away
Bro, Jahazii is no run‐of‐the‐mill fintech start-up.
Operating in East Africa, it has reimagined Earned Wage Access (EWA) by enabling employers to manage salary advances for their employees. The company’s ingenious model allows workers to tap into up to 50% of their already‐earned wages instantly. Payroll data is at the heart of its operations, and a USSD code system ensures that even those without smartphones can benefit. Jahazii charges a modest 5% fee per advance—a stark contrast to the 15–18% charged by digital lenders—while maintaining 81% gross margins and a flawless record of 0% defaults on over $140K in advances.
I was introduced to Vaidehi Tembhekar, the brilliant founder behind Jahazii, by the legendary human (& Investor) Siim Teller. Naturally, I dropped everything to speak with her. Our video call left me both inspired and conflicted. Vaidehi’s operational acumen and clear vision impressed me across all metrics. Jahazii is already post‐revenue and ticking off critical milestones. Since the first video will Vaidehi on the 17th on January, A Tier 1 bank integration went live on today (17 February 2025) with testing set to commence within the next two weeks—an achievement that had originally been projected over a six‐month timeline. A second lender partnership for float capital is in its final legal review, introducing a dual-lender model that not only bolsters capital redundancy but also drives unit economics from an advance capacity of $140K/month pre-bank to an expected $500K/month in a dual-lender scenario.
I come from Investment Banking & thus, I still prepare Investment Memo’s. I produced one on Jahazii and it is a compelling document in its own right. It reveals that the company will achieve a 35% month-on-month growth following the bank integration (previously 27%), while onboarding a fourth employer pilot—expanding workforce coverage by 23%. The forthcoming participation in the MIT Solve pitch competition on 21 February is expected to deliver a pipeline conversion lift, with historical data suggesting that 40% of Earned Wage Access start-ups gain an additional 25% in employer leads post-competition. Jahazii’s metrics are nothing short of extraordinary:
Gross Margins: Starting at 81% pre-bank integration and projected to reach 94–96% with the dual-lender model.
Advance Capacity: Growing from $140K/month to an anticipated $500K/month.
Employer Onboarding: Reduced from 14 days to just 7 days with the second lender in place.
Retention & Defaults: An 80% employee retention rate via payroll lock-in and a perfect 0% default record across all advances.
The market opportunity is vast. Africa’s 260 million formal workers face significant liquidity challenges. Approximately 65% exhaust their wages before payday, a situation exacerbated by underdeveloped credit infrastructure. Traditional salary advance methods impose a heavy administrative burden—costing employers between 12 and 18 hours per month—while digital lenders charge exorbitant interest. Jahazii’s employer-embedded model creates a structural moat. By integrating directly with payroll systems, it drives negative customer acquisition costs, as employers onboard entire workforces at no extra cost. The company’s regulatory advantage is clear: by classifying its service as earned wage access rather than a loan, it sidesteps the usury laws in Kenya and Tanzania.
Jahazii’s capital strategy further cements its appeal. The transition from a balance sheet-funded model to a single, and eventually dual, lender approach has profound implications:
Revenue Share Optimisation: With a 60/40 split with the primary lender versus a 55/45 split with the secondary.
Zero Balance Sheet Exposure: A full migration to partner capital is anticipated by Q2 2025.
Future Upside: The development of payroll analytics tools holds the potential for a 30% boost in ARPU.
Financial projections for 2025 are equally ambitious. Monthly advances are expected to jump from $165K in Q1 to $1.2M by Q4, with the number of employers expanding from 4 to 80 and employee coverage leaping from 1,230 to 98,400. A $10M Seed round in Q4 2025 is projected to be achieved at a 3.3x SAFE cap multiple, representing a remarkable 72% discount compared to African fintech peers trading at a 6.1x revenue multiple.
In traditional investment parlance, Jahazii is trading at 0.2x its projected 2025 revenue of $1.8M. Comparable companies in Latin America (comparable continent to Africa) are valued at approximately 5.1x revenue. Additionally, the EV per employee coverage stands at $30.50 for Jahazii versus $227.80 for the African fintech median. These metrics illustrate not only a compelling valuation arbitrage but also a structurally sound business model with significant upside.
Venture capital is a game of exceptions—a notion I was reminded of during an unrelated conversation with Ben Zises. When something exceptional crosses your desk, it can make you question your existing mandates. Despite Jahazii’s undeniable allure, I am unable to invest. My mandate as a pre-revenue angel investor confines me to the earliest, most nascent stages of a company’s journey. Jahazii has evolved past that phase. Moreover, I recently became a Limited Partner in a fund that holds stakes in two companies operating in adjacent sectors. The potential conflicts arising from such adjacent business interests—akin to a real estate brokerage and its affiliated mortgage lender—mean that even an opportunity as enticing as Jahazii falls outside my purview.
In my personal life, I pursue challenges that many shy away from—approaching ‘individuals’ deemed out of reach with confidence, decency, and a touch of cheek. I am driven by the raw potential that only the earliest stage of an idea can offer. This passion for the unbridled, creative phase is what defines my approach to angel investing. Venturing into later-stage investments, as everyone seems to be doing these days, switching to private equity or entangling myself with conflicting interests would detract from the very essence of what I cherish in the investment process.
Jahazii is the epitome of a transformative opportunity. Its innovative approach to solving Africa’s liquidity gap, combined with robust unit economics, regulatory advantages, and a compelling growth story, makes it a venture that any wise, wise investor would be remiss to overlook. The numbers are impressive, the market is vast, and the strategic milestones speak volumes. Yet, due to the stage of its evolution and unavoidable conflicts of interest, I must watch this phenomenal venture from afar.
Jahazii embodies a rare confluence of possibility, precision, and passion. It is the sort of opportunity that leaves you thinking, "I wish I could invest in Jahazii."
However - you can: Vaidehi@Jahazii.io