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P2P Microlending Without Borders




EVENT: Women Startup Challenge


ZIDISHA INC. wrote -

UPDATE: A generous donor is matching contributions to this campaign dollar for dollar - so each dollar you give will unlock TWO dollars for Zidisha!


We are pioneering the first online microlending community to connect lenders and borrowers directly across international borders - overcoming previously insurmountable barriers of geography, wealth and circumstance.  It’s an incredibly worthwhile thing to be a part of.


People in developing countries support their families with their own small businesses. They need loans in order to grow - but local banks charge exorbitant interest rates: 37% is the global average for microfinance loans.

First-generation microlending websites use local banks to manage the loans, and the end borrowers pay similar high rates for the loans funded through these sites.  For example, the average Kiva borrower pays over 35% in fees and interest.

We leverage the recent spread of the internet in developing countries to bypass expensive local banks and connect lenders and borrowers directly via an online person-to-person lending platform. 

The result is dramatically more affordable: Zidisha borrowers pay one lifetime membership fee when they first join, and thereafter only 5% for each loan.  Lower costs mean profits from the loan projects go to the borrowers, instead of to the banks’ administrative expenses. 


  1. A borrower in a developing country logs into Zidisha and posts a loan request to fund a business or education. 
  2. A lender anywhere worldwide selects an available loan and provides all or part of the funding.
  3. We use mobile phone payment services to transfer the funds directly to the borrower. Zidisha has no offices or staff in borrower countries.
  4. Lenders and borrowers stay in touch on the impact of the loan, sharing comments and photos throughout the lending period.
  5. Loans are repaid in regular installments and can be relent to new borrowers.  Repayment performance and lender reviews are recorded in the Zidisha website, incentivizing responsible use. 


We’ve been working since 2009 to develop the world’s first platform to link individuals in developing countries to the international P2P lending market without any local intermediaries.  Since then we’ve accomplished the following:

  • Facilitated over 3.2 million dollars in loans to over 13,000 small businesses in Africa, Asia and Latin America
  • Grown to over 21,000 users in 144 countries
  • Attracted over 100 full- and part-time volunteer staff from around the world
  • Covered our costs while charging borrowers less than 1/3 the average cost charged to traditional microfinance borrowers
  • Achieved a loan repayment performance comparable to that of US small business loans 
  • Became one of the first nonprofits to graduate from Y Combinator, the tech incubator that launched Airbnb, Dropbox and other game-changing startups


Demand for Zidisha loans has gone through the roof this year, as new borrowers join and existing borrowers repay their loans and qualify for larger ones.  We no longer have sufficient capital in the platform to fund all the loan applications.  As a result, many deserving projects expire unfunded every day.

100% of the donations we receive through this campaign page will be used exclusively for funding loans for Zidisha entrepreneurs in Africa, Asia and Haiti.  Repayments will be recycled into new loans, thereby creating a continuously renewing supply of loans for our entrepreneurs.

  • If you already have a Zidisha account: enter the email you registered with Zidisha when making your donation. We will credit the full amount you contributed to your account so that you can allocate it to entrepreneurs of your choice.  (Note: Any amount you contribute via the campaign cannot be withdrawn as cash.)
  • If you do not have a Zidisha account and do not wish to open one, we will credit your donation to our general lending account and allocate it to the entrepreneurs on your behalf.
  • Your donation will be used exclusively to fund loans.  Zidisha will receive a dollar-for-dollar matching donation for the amount you donate (up to $20,000).  The matching donation will be used to help Zidisha grow.


It was Thanksgiving Day, 2008 and I was in Niger, a vast famine-stricken wasteland in the middle of the African continent.

An idealistic twenty-four-year-old, I'd been hired out of graduate school to manage overseas grants on behalf of the US government. This was my second year on the job and I already had a reputation as a maverick. Much to the discomfort of my colleagues, I refused to stay at the expensive hotel normally reserved for US government visitors and settled instead on a cheap hostel. The hotel cost more per day than many Nigeriens earned in a year, and I couldn't stand the disparity.

I made a holiday phone call to my parents in America, and we exchanged the usual Thanksgiving banter about turkey and second pieces of pie. Then I went out to the marketplace to buy dinner. I ordered a Nigerien staple - a big bowl of millet porridge with sauce made from baobab leaves - for about ten cents and waited my turn for a spoon.

By that time, I was surrounded by kids, some as young as three years old, barefoot and jostling each other to get closer to me. I assumed they were just curious to see a foreigner, and finished my bowl of porridge as best I could under their stares. But they had more at stake than curiosity. When I set the bowl back on the table, the largest of them, a wiry six-year-old, pounced on it and polished off the leftovers, while the others looked on hungrily. These children were locked already in a grim contest for survival.

They were so close. I wanted to open my backpack and give them everything I had, buy them all bowls of porridge, or better yet invite them into my parents' comfortable suburban home in America and let them feast on turkey and stuffing and candied yams. As if sensing my thought, my tiny observers crowded closer, and more and more joined them, hoping for a handout. Some were no higher than my knee but already had a hard, vacant look in their eyes. How to help them?

Years of working with NGOs and government aid programs were convincing me that handouts are a dead end, temporarily soothing the acuteness of the injustice but taking donor and recipient down a path of dependence that ultimately makes the international wealth divide even wider.

I had also been working with microfinance - small amounts given not as handouts but as loans to invest in revenue-generating activities - and while in graduate school helped found the first microfinance organization to be funded exclusively by capital raised over the internet. This organization, a nonprofit based in Senegal, ended up raising hundreds of microloans through Kiva at zero cost. In order to manage the loans we opened an office, hired a loan officer - and saw our overhead costs shoot up to more than a third of the value of the loans we were making. The interest we would have had to charge to cover our costs was high enough to wipe out the borrowers' profits, defeating the purpose entirely. This is the story of traditional microfinance the world over: the average interest rate charged by organizations that raise zero-cost capital through Kiva is 35%.

But by 2008 something new was happening: the internet was making inroads in the world's poorest places, and ordinary people there were going online. Cheap cybercafes appeared on every corner, offering an hour of browsing for the price of a banana. The early adopters were young adults in urban centers, whose incomes were as meager as previous generations, but unlike their parents were avid users of Facebook and Yahoo. They were using the internet to connect with friends and family elsewhere in the country and even overseas. Back at my old microfinance organization in Senegal, the younger entrepreneurs no longer needed a loan officer to interact with Kiva lenders on their behalf.

Could this new connectivity be leveraged to produce more radical change? The internet was making geography irrelevant for a rapidly increasing percentage of the world's population. Why not use it to make geography irrelevant for those who have been most handicapped by geography, who happen to have been born in the parts of the world that are forgotten and desperate, whose life expectancy is less than forty years because they are located in Haiti or Mali instead of Japan or Norway, who drop out of school at age thirteen and spend their days laboring to put food on the table?

The international wealth divide runs deep, even in my own family. Having been born in America, I had the best education handed to me without any particular effort on my part. My husband was born in Indonesia, and spent his childhood selling used newspapers in the streets and bringing the pennies he earned home to his mother. College was out of the question, even though he was at the head of his class and passionate about reading and learning. This kind of injustice has been with us for all of human history. We assume it is unsolvable.

But with the internet making geographic barriers irrelevant, is that assumption still true? Can the digital revolution be used to overcome the geographic handicap, so that someone who happens to be born in Niger or Indonesia or Kenya or Burkina Faso has the same chance to succeed as someone born in a wealthy country? Can the internet be used to make geography irrelevant and bring those hungry kids in Niger right into the living room of my family's home in America?

People told me this ambition was too high, too optimistic. The disparity between rich and poor countries is so vast as to be insurmountable. The world has always been this way and always will be, they said. I don't believe it.

The history of technological change follows a common pattern: the diffusion of new technology produces a sudden shift in what is possible, but our habits and assumptions change much more slowly. I believe we are at that point now, where the advance of the internet has made this vast geographical disparity in wealth no longer necessary - but we have not yet grasped this sea change and adjusted our ways of doing things to encompass it.

Zidisha was founded to see how far this idea of using the internet to make geography irrelevant can go. We use technology to connect internet-capable young adults in the world's poorest places with a global market for person-to-person loans - an eBay-style marketplace where borrowers transact directly with lenders and raise the funding they need to grow their small businesses, limited only by their own track record of responsible repayment. Since we do not outsource loan management to local banks, the cost to borrowers is far lower than what has traditionally been possible for traditional microfinance. As a result, living in an unlucky part of the world need no longer put a ceiling on our members' ambitions. They can connect to Zidisha regardless, using technology to bypass hitherto insurmountable local obstacles.

Zidisha is pioneering something radically new, continuously learning and adapting our model as we gain experience. Our community is the work of hundreds of volunteers and thousands of lenders and borrowers in every continent, who are fed up with a world that shuts people out of opportunity because of their location. We've many transformed many thousands of lives through the opportunities created by connecting people to people.

Just as importantly, we're proving that it is possible to use technology to bridge the international wealth divide - slowly undermining the paradigm that allocates people in developing countries to an unreachable place. The intent is that others will seize on this possibility and build on our work. To facilitate that, we have made our website code open source, so that anyone may copy and adapt it.

For the first time in history, we have the technological tools to make geographic barriers irrelevant. Poverty and lack of opportunity arising from geographic location is no longer necessary or tolerable. We are connecting people across the international wealth divide, and the world will never be the same.

Julia Kurnia, Founder


To learn more, check out these helpful links:

You may also contact Zidisha founder Julia Kurnia at julia at


To This Fundraiser


  • AAE-USA Team



The Team: $6,191 TOTAL RAISED SO FAR

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58% Raised of $10,000 Goal

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Erik Naslund

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Andreas Bernt-Baertl

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Dennis Sullivan

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Jorge Alagon

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12% Raised of $250 Goal

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Dominik Wagner

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Haroldo Junior

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Donor Comments




3 years ago