Uganda-based digital lending fintech startup Numida said it will start serving micro, small and medium-sized businesses in other African countries. Numida’s plans to offer services to businesses outside of Uganda came shortly after it was announced that the startup had raised a total of $12.3 million in its pre-Series A funding round. Serena Ventures, a venture capital firm founded by American tennis player Serena Williams, led the round.
Unlocking the Potential of Small Businesses in Africa
Uganda-based fintech company Numida said it plans to expand its digital lending business abroad, using a portion of the $12.3 million it raised through a pre-Series A equity debt financing. The round was led by Serena Ventures, the venture capital firm of American tennis star Serena Williams. Breega, 4Di Capital, Launch Africa, Soma Capital and Y Combinator also participated in the round.
In comments following Numida’s successful fundraising, co-founder and CEO Mina Shahid reportedly touted the impact of the financial product his company has been leveraging on small businesses in Uganda, and how it can be replicated in other African countries . Shaheed said:
I am very excited about continuing to build and deliver financial products for these small and micro business owners…. There are many such businesses on the African continent and we truly believe that we have proven in Uganda a model that can be pan-African and unleash the potential of these businesses to grow and achieve great things.
As explained in Techcrunch Report, Numida prioritizes serving Micro, Small and Medium Enterprises (MSMEs) as they continue to be marginalized by traditional financial institutions. With the recently raised capital, Numida said it plans to grow its active customer base to 40,000. The fintech startup plans to do this by expanding its operations in two countries, the report said.
According to the report, Numida raised $2.3 million in 2021 and has provided MSMEs with $20 million in working capital to date. Backed by Lendable Asset Management, which recently provided a $5 million loan to the startup, Numida will increase the value of its loan while revamping its product to ensure its affordability.
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