Tugende, an East African fintech platform that offers asset financing and digital services to small businesses, is thrilled to announce that it has closed a pre-Series B investment round. The financing, which was agreed upon in March and published publicly today, was led by Partech Africa, a current investor. Existing investors, such as Mobility 54, Enza, and Global Partnerships, were joined by new investors, such as the global financial inclusion fund Women’s World Banking Capital Partners II (WWBCP II).
The extra equity funding will enable Tugende to keep its growing pace, continue the rollout of digital-first products, and expand its offerings for new and returning consumers, as well as their communities. The investment, structured in the first quarter of 2022, will further strengthen Tugende’s balance sheet and shareholder base in preparation for a forthcoming Series B financing. In late 2020 and early 2021, Tugende secured $9.9M in Series A funding led by Mobility 54 and Partech Africa, with participation from Global Partnerships, Enza Capital, and other angel investors.
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Why The Investors Invested
Tugende has garnered considerable traction since it was founded. So far, Tugende has served over 55,000 customers and is expanding geographically with 23 branches in Uganda and 10 branches in Kenya and more than 900 staff.
“We’re excited to join Tugende’s journey” said CJ Juhasz, Chief Investment Officer of Women’s World Banking Asset Management. “Tugende is a leader in reaching and de-risking underserved individuals and businesses for financial services to grow and create jobs. Women’s World Banking is dedicated to economic empowerment and we are particularly keen on investing at the intersection of mobility and finance, as the empowerment potential for individuals, especially women, is multiplied. Tugende’s leadership is visionary, cares deeply about its mission, and brings the experience to achieve its ambitious plans. We look forward to teaming up with Tugende as it drives financial inclusion pan-Africa and increases the number of women served in its business ecosystem.”
“Tugende is committed to innovation and partnerships that remove barriers for people and businesses to build better futures,” said Tugende CEO Michael Wilkerson. “With partners such as WWB on board, Tugende will benefit from the added expertise in delivering Tugende’s Gender Action Plan and activating more Women entrepreneurs in Tugende’s Ecosystem.
Women’s World Banking Asset Management (“WAM”) invests in innovative inclusive finance companies in emerging markets, guiding them to capture the large market share of financially underserved women and the large talent pool of women staff and leaders. The first Fund established by WAM was a pioneer in gender-focused impact investing in inclusive financial service providers. WWBCP II enlarges the gender-focused investment approach in innovative financial service providers by establishing a specialised technical assistance centre to aid portfolio companies in achieving gender inclusion objectives.
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A Look At What Tugende Does
Tugende, a company founded in 2012, helps Micro, Small, and Medium-Sized Enterprises (MSMEs) acquire income-generating assets through asset finance, technology, and a strategy of high-touch customer care.
Tugende’s proven approach enables informal entrepreneurs in Africa to 1) own income-generating assets, 2) establish a verifiable digital credit profile, and 3) have access to future prospects, such as discounts, cellphones, e-commerce opportunities, and on-demand credit lines. Motorcycles, three-wheelers, minibuses, automobiles, freezers, boat engines, and other company assets are Tugende’s primary products.
All packages include product and medical and life insurance, safety equipment, continuing assistance, and a digital credit profile that enables successful clients and their communities to qualify for additional opportunities, such as top-up loans and enhanced insurance.
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Tugende has recovered strongly from Covid-19-related lockdowns in Uganda and Kenya, launching new products and locations, and winning both the Inclusive Fintech 50 award in 2021 and the 2022 Financial Inclusion award at the African Bankers Awards in recognition of its profound social impact and support for clients and staff during Covid’s worst economic shocks.
Tugende asset platform Tugende asset platform
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh