The USD 3.6 million extension round, negotiated and structured in 2020, was funded by Partech Africa, a member of the Partech Group, a multinational technology venture capital company, and Enza Capital, taking the total Series A volume to USD 9.9 million.
This follows the first close led by Mobility 54, the Toyota Group-backed Africa-focused venture capital firm, as well as USD 12 million in debt funding received over the last 18 months from institutional investors in the United Kingdom, Germany, Switzerland, the Netherlands, and South Africa.
Tugende’s financial adviser and arranger for equity and debt capital raises is Verdant Capital, a fintech and financial inclusion investment banking company.
Traditional banks are leaving a credit void, which is being filled by innovative and technology-enabled business models like Tugende’s.
Tugende’s capital raises help to boost its balance sheet and expand its loan portfolio.
Tugende launched its Kenyan operations in late 2019, kicking off its regional expansion while continuing to introduce new asset items for other forms of informal sector clients. Tugende established its position financing boda bodas (motorcycle taxis) in Uganda.
Tugende’s technology advancement and organizational growth will also be accelerated through equity investments and collaborations with leading equity firms.
Tugende helps micro, small, and medium-sized businesses (MSMEs) own income-generating assets through asset financing, technology, and a high-touch customer service model.
Tugende has assisted over 43,000 customers, with over 16,000 of them achieving asset ownership. In addition to affordable asset financing, its main asset finance packages include medical and life insurance, training, safety equipment, and digital credit profiles.
Tugende’s Series A deal adds to Verdant Capital’s track record of raising capital for high-impact emerging financial technology companies and introducing them to a global investor base.
Tugende, Retail Capital, a South African SME-credit tech player, and Planet42, a South African car-subscription firm, are some of the businesses Verdant Capital has raised funding for.
Read More on Tech Gist Africa:
Algebra Ventures, an Egyptian venture capital company, has launched a $90 million second fund