Tugende, the East African fintech platform providing asset financing and digital services to small businesses, has closed in Q2 pre-Series B equity funding from existing shareholders led by Partech and two new investors, including Women’s World Banking. The new investors add to the diversity of Tugende’s shareholding and complement the experience and skills that each contribute to firm’s growth.
Along with a recent debt closing, the combined USD 10 million investment further strengthens Tugende’s balance sheet, allowing it to increase portfolio growth and address a significant credit demand amongst MSMEs, particularly after the strict lockdowns of 2020 and 2021. The company continues to deliver this MSME support with award winning positive social impact to its clients and their beneficiaries. On May 25th, 2022, the company received the Financial Inclusion award at the annual African Banker Awards ceremony, held in Accra, Ghana.
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The pre-Series B equity investment builds on debt financing Tugende closed from Cordaid Investment Management, a leading European impact investor whose mandate is to support the growth of MSMEs across the African continent. The company is in the process of drawing down existing debt funding commitments from a variety of leading impact and MSME-focused investors.
Tugende’s business has emerged from the COVID-19 crisis on a strong and steady footing and is back on its high-growth trajectory. The MSME credit gap across sub-Saharan Africa amounts to more than USD 331 billion, with a gap of USD 37 billion in East Africa alone. Tugende is tackling this using asset finance, technology, and industry leading data analytics to unlock growth for informal and formalizing businesses. The company continues to expand its footprint in Uganda and Kenya and, in addition to its strong core package for motorcycle taxis, has increased its exposure to a broader range of income generating assets including four-wheeled vehicles, outboard motors (boat engines), and appliances—all for business use. All client financing packages include comprehensive insurance (product, medical, life), safety equipment, ongoing support, and a digital credit profile which enables successful clients and their communities to earn new opportunities such as top-up loans and enhanced insurance.
Tugende is a digitally enabled lender specializing in asset finance and credit scoring. It has supported more than 55,000 clients in Uganda and Kenya to own income generating assets and build credit profiles to unlock additional opportunities as they grow their business. More than 900 employees ensure the company remains the go-to provider of credit to MSMEs and help keep the company’s market leading portfolio quality and cost of risk strong.
