East African based micro lender 4G Capital has completed its second round of fundraising signifying growing investor confidence in the organization as it secured a $2m debt facility from Ceniarth LLC which brings the total funds raised to $4 million. Sources at the firm say it would use the investment for onward lending to its growing customer base of informal micro, small and medium-sized enterprises across Kenya and Uganda.
Since inception in 2013, the micro and small scale enterprises focused lender has grown exponentially lending over 750k loans valued at $ 90m. Over the last 12 months, revenue has increased by 97% as 4G Capital supported over 60,000 MSMEs. By the end of this year, 4G Capital will have lent $ 43.6m, surpassing all expectations.
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The company equally confirmed that repayment rates remain above national averages, at over 94% (without refinancing). “The rapid expansion of mobile and technology-based financial services in emerging markets has the potential to provide critical capital to individuals previously excluded from the financial system”, said Diane Isenberg, Founder of Ceniarth. “With this expansion comes great responsibility to ensure that customers understand and benefit from these services and are not exploited by providers focused more on growth than client impact. We are proud to support 4G Capital as a best-in-class financial lender that listens to the needs of the communities that it serves.”
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Wayne Hennessy-Barrett, CEO and Founder of 4G Capital, said: “We are incredibly honored to welcome Ceniarth as our latest investor. Together, we share a fierce passion for improving conditions for the underserved and neglected businesses of the African economy by providing financial services that sustainably unlock potential and help communities. 4G Capital has surpassed all key performance targets for 2019, and Ceniarth’s investment will help us meet the demands of our growing customer base and continue our positive impact into the future – a fantastic way to end a great year.”
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4G Capital understands that small businesses benefit from a level of continuous support when handling credit. Therefore, the company offers customers a curriculum of enterprise and financial literacy training blended with appropriately sized working capital loans. This approach has seen 4G Capital’s customers increase their revenue by an average of 82% year on year.
Over the course of 2020, 4G Capital will continue to grow its network of physical branches across Kenya and Uganda, with an additional 24 branches across Kenya and 34 across Uganda, bringing the network total to 150 branches.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry