4G Capital, an African neobank, has received $18.5 million in Series C capital from private equity firm Lightrock.
The funds will be used by 4G Capital to expand its last-mile finance and enterprise solutions to micro and small businesses in Kenya and Uganda.
The funds will also be utilized to grow the company’s retail finance service, Kuza, which assists store owners, FMCGs, and distributors in increasing sales.
“Lightrock and 4G Capital have a total alignment of purpose and vision,” stated Wayne Hennessy-Barrett, CEO and founder of 4G Capital. They have unrivaled knowledge of Africa and emerging markets. This money will transform our ability to grow the best products and services to the world’s most critical sector.”
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The Mauritius-based neobank offers unsecured business loans, financial literacy training, and access to digital solutions.
4G Capital said that since its inception in 2013, it has provided working capital loans totaling more than $230 million to over 1,750,000 small businesses, with repayment rates of approximately 94 percent.
“What is needed on the continent is investment money to back firms with the objective of financial empowerment,” said Lightrock partner Shakir Merali.
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4G Capital provides liquidity to Africa’s large market of economically generating enterprises, such as mobile phone repairers, hairdressers, and food vendors. The systemic benefit of improving lives is enhanced since productive employment leads to economic outcomes as well as improved education and health outcomes in the communities served by these firms.”
4G Capital Uganda 4G Capital Uganda
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer