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Headquartered in Kampala, fintech startup Tugende has secured $3.6-milllion in an equity financing round led by Partech, with participation from Enza Capital and regionally based angel investors.
Tugende has secured $3.6-million in equity
According to reports issued by Tugende, the funding will be used to grow the business, keep up with the high demand for its services offered and it will support the closure of new debt capital to fuel the companies strong portfolio growth in both Uganda and Kenya.
Michael Wilkerson, Tugende’s CEO comments on the equity financing secured.
“It’s an honor to bring on board additional top caliber investors. Both Partech and Enza have great records of partnering with their investees to drive strong growth, particularly by accelerating technology and innovation and we are thrilled to be working together as we continue our journey.”
Founded in 2012, the fintech company utilise asset finance, technology, and a high-touch customer support model to assist small, medium, and micro-businesses (SMMEs) in owning income-generating assets.
The fintech claims to have over 43 000 clients across Kenya and Uganda. Tugende’s range of products such as the core asset finance package includes medical aid, life insurance, training, safety equipment, affordable asset financing, and digital credit profiles for SMEs.
With its first product of motorcycle taxis, the fintech has expanded its portfolio to finance boat engines, cars, refrigerators, and other income-generating equipment. Tugende is currently piloting financing for e-mobility assets.
Using technology as its main interface to conduct business and offer its services to clients, all payments are digital. Tugende provides proprietary credit scores automatically to all clients to help them monitor their performance and unlock new opportunities like discounts and new products.
Displaying tremendous growth and resilience during the pandemic, Tugende launched six branches in Kenya in 2020. The implementation of the six new branches in Kenya forms part of the fintech’s expansion into the East African country.
Mike Mompi, Partner, Enza Capital explains the reasons why the venture capital firm invested in the fintech company, attributing the investment to its innovative business model and domino impact of its products and services.
“Tugende has a demonstrated ability to unlock sustained entrepreneurial activity through its productive asset financing business for informal sector entrepreneurs. We are particularly enthused by the Team’s innovative application of technology, which incorporates a range of social considerations to build a new type of credit score, and which will increase access to capital across a range of African markets where entrepreneurs currently have limited credit history or access to collateral. We are delighted to be backing the Tugende business and growing team through this rapid phase of growth.”
Featured image: Michael Wilkerson, founder and CEO of Tugende (Supplied)