Kenyan fintech startup Zanifu has received $1,000,000 in startup investment to ensure efficiency in the acquisition and distribution of goods for Kenyans.
The round included Saviu Ventures, Launch Africa Ventures, Sayani Investments, and other angel investors from Kenya and Nigeria, bringing Zanifu’s total fundraising to $1,200,000.
Zanifu will be able to update its platform and expand its stock-financing to more micro, small, and medium businesses (MSMEs) as a result of the investment.
Why The Investors Invested
Investors were attracted by Zanifu’s growing track record. According to the company, it has provided 85,000 working capital loans worth more than $13 million to 7,000 businesses in Kenya.
A Look At What The Startup Does
Zanifu, founded by Steve Biko and Sebastian Mithika in 2017, provides short-term stock financing of up to $2,000 to MSMEs in Kenya, with hopes to add 15,000 FMCG stores in the next year. Unilever, Nestle, Soko, Coca-Cola, P&G, and Brookside are among the company’s partners.
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Zanifu works with a variety of manufacturers and distributors to give credit to small firms, and shops who currently source products from the startup’s partners are eligible for the loan. Manufacturers, distributors, and retailers can use Zanifu’s platforms to enable seamless ordering, payment, tracking, and fulfillment.
Retailers borrow using Zanifu’s loan app, which allows them to upload information such as purchasing history. Within six hours of joining up, the businesses are given a credit limit based on the algorithm’s score. Retailers have up to a month to repay the loans, which have interest rates ranging from 3.5 to 5%.
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Zanifu, which has a foothold in Kenya, is now looking to expand into Ghana and Uganda. A regional presence will increase competition for fintechs like Numida in Uganda and Payhippo in Nigeria, which provide unsecured lending to small firms.
Zanifu
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