Tugende, a leading Ugandan fintech lender that specializes in asset lending in Kenya and Uganda, has closed a $17 million investment round at the end of 2021. For the year 2022, the funds will support substantial growth and year-end expansion. The funds raised will assist the organization in meeting client demand as well as supporting other technological advancements.
The Nordic Microfinance Initiative (NMI) offered a $ 5 million local currency facility, Symbiotics contributed another $ 6 million, and the Lendahand crowdfunding site contributed $1 million.
Tugende received $5 million from the revolutionary Goldfinch lending platform for its Kenya region.
Read also SendChamp raises $100,000 in angel round to build communication solutions for African businesses
It also closed a $ 3.6 million Serie A extension headed by Partech earlier this year in March, following the $6.3 million raised by Toyota Tsusho’s Mobility 54 in November. Tugende relies largely on debt financing due to the nature of its business and has raised over $30 million to far to boost its portfolio.
A Look At What Tugende Does
Based in Kampala, Uganda and launched in 2012, Tugende’s core product is a lease-to-own/hire-purchase package for motorcycle taxi drivers in Uganda and Kenya. The package includes training, medical and life insurance, safety equipment and hands on support through the journey to ownership. With over 35,000 clients served, Tugende is tackling the $331 billion credit gap MSMEs face across Africa.
Tugende recently launched a client app and has invested heavily in its technology backbone for scalability, data analytics, and operational efficiency. In addition to building ownership, Tugende clients earn a digital credit profile which allows them to unlock new opportunities like discounts, rewards, and products exclusive to top performers in the network.
Read also Kenyan Fintech Startup IMFact Secures $3.9m
Tugende currently has 17 branches in Uganda and one in Kenya and has already resumed growth in both countries after Covid-related lockdowns. While also commercially sustainable, Tugende has won numerous awards for its social impact and responded to challenging lockdowns in Uganda and Kenya in part with an unconditional household support grant for all clients to help their households survive the worst of the lockdowns
“Our clients have proven that they are creditworthy tens of thousands of times now and want opportunities to drive their own growth. We are committed to expanding those growth opportunities beyond credit alone — something we have already started by providing smartphones, family insurance, and digital credit profiles clients can access themselves,” Wilkerson said.
“Tugende is a launchpad for our clients and a partner for many years to come. We are excited and energized about bringing on strong new investors who also share our long term focus and will catalyze our ability to help clients own their future.”
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