Umba, the Kenyan digital banking platform, has announced it has secured $5 million in debt financing to support its expansion plans and boost lending operations across Africa.
The funding, provided by a consortium of global impact investors and fintech-focused lenders, will enable Umba to scale its suite of financial products, including personal loans, current accounts, and savings tools for underbanked consumers.
Launched in 2018, Umba offers a full-stack digital banking experience via mobile apps, targeting markets with limited access to traditional banking services. The startup operates primarily in Kenya and Nigeria, two of Africa’s most dynamic fintech ecosystems.
“We’re thrilled to close this new debt facility, which gives us additional firepower to serve more customers and deepen financial inclusion,” said Tiernan Kennedy, CEO and co-founder of Umba. “We see a huge opportunity to bring fair, accessible financial products to millions who are currently underserved by the formal banking system.”
The $5 million injection will primarily be used to expand Umba’s lending portfolio, enhance its credit scoring technology, and enter new East and West African markets over the coming year.
Debt financing is increasingly being used by African fintechs like Umba to finance loan books without diluting ownership — a strategy that reflects growing investor confidence in the sector’s long-term viability.
“Umba’s data-driven underwriting and commitment to responsible lending stood out to us,” said one of the lead lenders, who requested anonymity due to regulatory reasons. “They are creating sustainable impact while building a scalable business.”
Umba previously raised $15 million in a Series A equity round in 2022, backed by notable investors including Costanoa Ventures, Monzo co-founder Tom Blomfield, and Palm Drive Capital.
As mobile banking adoption accelerates across Africa, Umba’s latest funding highlights the continued momentum behind digital-first platforms aiming to redefine financial services for the continent’s next billion users.
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