Tuma, a fintech startup based in the Democratic Republic of Congo (DRC), has successfully raised a significant investment round totaling $500,000. This investment represents the largest funding round ever secured by a Congolese fintech company. The funding round attracted notable participants, including Visa, Visible Hands, and the Social Justice Fund. The primary purpose of this investment is to fuel Tuma’s expansion into new markets and enhance its range of product offerings.
Reasons for the Investment
The decision made by the investors to provide substantial funding for Tuma can be attributed to several compelling reasons. The Congolese startup ecosystem witnessed a remarkable surge in funding in the previous year, with a total of $38 million raised according to Partech. Although a significant portion of these funds went to a crypto firm called Jambo, it highlighted the growing potential of the fintech industry in the country. Investors recognized this opportunity and chose to capitalize on the momentum.
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Furthermore, the financial system in the Democratic Republic of Congo faces numerous challenges, making it inadequate in addressing the country’s economic needs. The low bank penetration rate of approximately 6% and the fact that only 25% of the population possesses a financial institution account underscore the urgent demand for innovative solutions. Tuma, with its mission of financial inclusion, aims to bridge this gap by offering a digital platform that allows merchants to accept card payments using their mobile phones. The investors saw Tuma’s business model as a promising solution to tackle the prevailing financial issues in the country.
Lastly, the introduction of the startup act by the DRC government in the preceding year played a pivotal role in attracting investment and supporting tech innovators and entrepreneurs. This act, which was signed into law on September 8, 2022, demonstrated the government’s commitment to fostering the country’s digital transformation. The visible legal framework established by this act instilled confidence in investors, making it easier for them to consider investment opportunities in the DRC. Tuma’s funding success serves as a testament to the positive impact of the startup act, validating the belief that the DRC has become an attractive destination for tech investments.
A Look at Tuma
Tuma, founded by Elijah Lubala and Mpilo Makae, is a two-year-old fintech startup operating in the Democratic Republic of Congo. The company’s primary objective is to promote financial inclusion in the country. Tuma achieves this by providing a digital solution that enables merchants to accept card payments directly on their mobile phones. Given that nearly half of the Congolese population owns a mobile phone, Tuma leverages software POS technology to transform any phone into a point-of-sale (POS) device. This innovative approach allows customers to conveniently tap their cards on the back of the phone for payment.
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In pursuit of its vision, Tuma has established partnerships with prominent financial institutions such as UBA Bank Group, Credit Bank Kenya, InTouch, Appiawave, Cellulant, and Seerbit. These collaborations enable Tuma to facilitate secure and efficient card payment transactions through its digital platform. The startup’s founders, Lubala and Makae, recognized the potential impact of leveraging mobile phone technology to drive financial inclusion in the DRC, thereby establishing Tuma as a frontrunner in this space.
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