Tech in Africa
Leading Uganda fintech lender Tugende specialized in asset finance in Kenya and Uganda has closed a new $17 million debt capital round at the end of 2021. The funds will support strong end-of-year growth and expansion run for 2022.
The Nordic Microfinance Initiative (NMI) contributed a $5M local currency facility, Symbiotics extended an additional $6M, and $1M from the Lendahand crowdfunding platform. For its Kenya segment, Tugende received $5M from innovative lending platform Goldfinch.
The company now has 5 branches in Kenya – its second market. Capital raised will help the company meet its customer demand and waiting lists and support further technology-driven innovations that serve clients far beyond a single asset being financed.
The company was formed by Michael Wilkerson in 2012 and uses asset finance, technology, and a customer support model to offer a lease-to-own mobile taxi package for riders. Thus far over 54,000 people have benefited from the company’s financing package that offers road safety and financial training, medical and life insurance, driving permits, safety equipment, and hands-on support prior to ownership.
In addition to ownership which doubles the clients’ income, Tugende’s clients have also get to build a digital credit profile and score on their journey towards asset ownership. Tugende has been diversifying into new product lines, both in the mobility and non-mobility segments.
Earlier this year in March, Tugende closed a $3.6 million Serie A extension led by Partech, which was closely preceded by the $6.3 million raised from Toyota Tsusho’s Mobility 54 in November 2020. Due to the nature of its business, Tugende relies on a great deal of debt investment and has thus far raised over $30 million to boost its portfolio.
A very happy end to the year!
Ending 2021 Strong: Tugende closes $17M in additional debt investment. https://t.co/lDYA6j59rg
— Tugende (@Tugende1) December 20, 2021
