- Series A extension round of 3.6 million brings total funding to 9.9 million
- Initial round backed by Toyota Group
- Investment secured by leading fintech and financial inclusion investment banking franchise of Verdant Capital.
Reports have it that the MSME credit gap across sub-Saharan Africa amounts to more than USD 331 billion per year, with a gap of USD 37 billion in East Africa alone. The growth of innovative and technology enabled business models, such as Tugende’s, are helping fill the credit gap left by traditional banks.
The capital raises for Tugende will help the brand strengthen its balance sheet and allow the expansion of its loan portfolio. Having built its leading position financing startups like boda bodas (motorcycle taxis) in Uganda, Tugende launched its Kenyan operations in late 2019, kick-starting its regional expansion, while it continued to add new asset products for other types of informal sector clients. The equity investments and partnerships with leading equity firms will also accelerate Tugende’s technology development and organisational growth.