Verdant Capital has raised a $9.9m Series A equity for Tugende, a technology-enabled Micro, Small and Medium Enterprises lender in East Africa.
The company disclosed this in a statement on Wednesday.
Verdant Capital, which serves as Tugende’s financial advisor and arranger for its equity and debt capital, said the capital would strengthen Tugende’s balance sheet and allow the expansion of its loan portfolio.
It also said the transaction was the most recent of its award-winning fintech and financial inclusion investment banking franchise.
“Partech Africa, a member of the Partech Group, a leading global technology venture capital fund; and Enza Capital invested in the $3.6m extension round (agreed and structured in 2020) bringing the total Series A volume to $9.9m,” the company explained.
According to Verdant Capital, the MSME credit gap across sub-Saharan Africa amounts to more than $331bn yearly.
The equity investments and partnerships with leading equity firms will also accelerate Tugende’s technology development and organisational growth, Verdant added.
Tugende’s core asset finance packages include medical and life insurance, training, safety equipment and digital credit profiles, in addition to affordable asset finance.
Verdant further explained that Tugende’s Series A transaction cemented its track record in raising capital for high impact emerging fintech leaders and bringing the businesses to a broad range of global investors.
Based on the growth in its pipeline, Verdant said it was expecting sector-wide deal volumes in 2021 to exceed the levels set in 2020.
