Kuunda, a Tanzanian B2B fintech options supplier that gives working-capital options, has raised $7.5 million in pre-Collection A funding to broaden throughout Africa, the Center East, and North Africa (MENA), beginning with Egypt.
The funding spherical noticed participation from repeat traders, monetary retail service suppliers, and different enterprise capital companies, together with Portugal Gateway Fund, Seedstars Africa Ventures, 4Di Capital, Accion Ventures, Nedbank, and E4E Africa.
Based in 2018 by Andy Milne, Sam Brawerman, and Morne van der Westhuizen, Kuunda helps associate firms design and handle monetary providers methods by embedding credit score merchandise into their digital cost platforms. Its expertise permits customers to entry short-term liquidity merchandise reminiscent of airtime top-ups, cell cash float loans, inventory financing, and service provider money advances.
The funding comes as Kuunda seems to be past East Africa to faucet into Egypt’s fast-growing digital funds and e-commerce markets. With over $3 billion in loans already disbursed for financial institution companions, the corporate is betting that its “embedded liquidity” mannequin, which permits banks and digital platforms to supply credit score instantly inside their ecosystems, can unlock entry to finance for thousands and thousands of small companies and brokers throughout the continent.
“We’re unlocking entry to finance for Africa’s productive class – the brokers, retailers, and small companies which can be the spine of those economies, while serving to shoppers construct up resilience by accessing credit score once they want it essentially the most,” mentioned Milne, Kuunda’s co-founder & co-CEO.
With the brand new capital, Kuunda plans to deepen its partnerships throughout Africa by extending providers to e-commerce gamers and point-of-sale (PoS) community suppliers. It’s going to additionally develop new financing instruments to assist micro, small, and medium enterprises (MSMEs).
Kuunda is focusing on Egypt as its subsequent frontier as a result of nation’s sturdy cell cash penetration and a $115.7 billion PoS market, with an anticipated annual development fee of 8.3%. The corporate plans to associate with native e-commerce and PoS suppliers trying to embed lending merchandise for retailers and customers. Past Egypt, Kuunda goals to broaden into Saudi Arabia, the UAE, and Morocco.
“Throughout our markets, we repeatedly see brokers, MSMEs, and shoppers constrained by cashflow,” mentioned Bruce Nsereko-Lule, Basic Accomplice at Seedstars Africa Ventures. “Kuunda’s embedded working-capital merchandise unlock liquidity precisely the place commerce occurs – on the edge.”
Milne acknowledges the challenges in scaling its embedded liquidity resolution throughout areas. He cited regulatory approvals for merchandise and tech integration of lending options with its companions’ infrastructure. As the corporate plans to scale into MENA, Milne admits that language variations and cultural complexities are certain to current hurdles to its enlargement.
The corporate will compete with established digital lending platforms like MNT Halan, Fawry, and Flend, which lately secured $3 million in seed funding to broaden SME financing. Kuunda bets that its operational mannequin will present alternatives for the partnerships it must scale.
“Our mannequin is capital and licences mild, it supplies us with a low-cost alternative to broaden into a brand new area,” Milne mentioned.
Since its launch, Kuunda has expanded from Tanzania and Pakistan to Uganda, Malawi, Kenya, and Mozambique, partnering with main gamers like M-Pesa Tanzania, Airtel Africa, and OneLoad Pakistan. The corporate, which raised a $2.25 million seed spherical in 2021, says it now allows banks to disburse greater than $100 million in credit score to over two million prospects each month.
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