Lulalend, a South African fintech startup, has raised US$35 million in Series B funding to expand its digital lending platform for underserved SMEs.
The international impact investor Lightrock led the investment round, which included previous investors International Finance Corporation (IFC) and Quona Capital as well as new investors DEG, Triodos Investment Management, and Women’s World Banking Asset Management.
Lulalend, the first online automated source of business funding in South Africa, was established in 2014. It leverages patented AI technology to make cash flow management for business owners simpler.
“We look forward to using these funds to expand and improve our offerings in order to better meet the needs of South Africa’s SMEs. We anticipate having a truly revolutionary effect on this significant economic sector, which accounts for about 40% of GDP and 60% of private sector employment. According to Trevor Gosling, co-founder and CEO of Lulalend, “Our mission is to promote financial inclusion and serve as a catalyst for growth and success throughout the SME sector.
With the money raised, Lulalend will be able to grow the size of its loan book, launch new products, and invest in personnel and technology to hasten the launch of its brand-new digital business banking offering.
Lulalend will also use the funds to expand its operations and close South Africa’s ongoing SME credit shortage.
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