4G Capital - Afrikan Heroes

Kenyan Neobank 4G Capital Raises $18.5m To Boost Business In Kenya, Uganda

March 18, 2022

4G Capital, an African neobank, has received $18.5 million in Series C capital from private equity firm Lightrock.

The funds will be used by 4G Capital to expand its last-mile finance and enterprise solutions to micro and small businesses in Kenya and Uganda.

The funds will also be utilized to grow the company’s retail finance service, Kuza, which assists store owners, FMCGs, and distributors in increasing sales.

“Lightrock and 4G Capital have a total alignment of purpose and vision,” stated Wayne Hennessy-Barrett, CEO and founder of 4G Capital. They have unrivaled knowledge of Africa and emerging markets. This money will transform our ability to grow the best products and services to the world’s most critical sector.”

The Mauritius-based neobank offers unsecured business loans, financial literacy training, and access to digital solutions.

4G Capital said that since its inception in 2013, it has provided working capital loans totaling more than $230 million to over 1,750,000 small businesses, with repayment rates of approximately 94 percent.

“What is needed on the continent is investment money to back firms with the objective of financial empowerment,” said Lightrock partner Shakir Merali.

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4G Capital provides liquidity to Africa’s large market of economically generating enterprises, such as mobile phone repairers, hairdressers, and food vendors. The systemic benefit of improving lives is enhanced since productive employment leads to economic outcomes as well as improved education and health outcomes in the communities served by these firms.”

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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

4G Capital Provides Operational & Services Update on COVID-19 Outbreak in East Africa

March 27, 2020

4G Capital, a market leader in technology-driven financial inclusion, announces an update on its operations across Kenya and Uganda and shares its approach to safeguarding its clients, employees, and services amid the COVID-19 outbreak. For over six years, 4G Capital’s primary focus has been the removal of barriers that inhibit financial inclusion and unlocking the potential of East Africa’s micro and small businesses through the provision of working capital credit combined with financial literacy and business enterprise training.

As Kenya and Uganda go into ‘lock-down’, the COVID-19 outbreak threatens the most vital yet vulnerable segment of the economy, the informal sector. In Kenya, according to the FSD Kenya and Kenya Revenue Authority, approximately 95% of the country’s businesses and entrepreneurs operate within the informal sector, and only 24% of them own a business bank account. The majority of 4G Capital’s clients are traders operating within the informal sector, typically located in crowded open-air markets, where isolation and social distancing protocols are incredibly challenging. Restricted access to running water and sanitation will also create enormous difficulties as these businesses do their best to follow safety guidelines.

The survival of small local businesses is critical to the welfare of local communities as they provide affordable food and daily provisions. In response, 4G Capital and other industry leaders have formed a coalition to enable access to sanitizer and handwashing facilities across market places in greatest need.

4G Capital is committed to helping its clients throughout this challenging period while supporting government policies. The company has adjusted processes to ensure business continuity and the safety of clients and employees. 4G Capital has over 100 local branches across Kenya and Uganda, and all will remain open while government policies allow; however, changes have been made to field activities to minimize social interaction. Existing clients can access 4G Capital’s services seamlessly over its mobile technology platform, while new clients are advised to contact the Customer Service Centre by email: contact@4gcapital.com.

To safeguard the wellbeing and sustainability of the company, 4G Capital are enforcing strict financial disciplines across the Group while maintaining balanced and controlled operations. All non-priority projects have been postponed until further notice, and all non-essential operating expenses have been deferred in favor of efficiency and strengthened liquidity.

Wayne Hennessy-Barrett, CEO and Founder of 4G Capital, said: “We have a clear mission to not only drive growth across the informal economy but to protect it. Our investors, management and employees are committed to the wellbeing, safety, and success of our clients. We stand proudly with those who continue to serve in times of greatest need and pray for those who find they cannot.”

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

4G Capital Raises $4 million for MSME Finance

January 8, 2020

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.

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.”

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.”

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

4G Capital Secures $2m For Its East African SME Lending Business

December 22, 2019

SMEs in Kenya, Uganda and across other African countries can now pitch to 4G Capital which has raised a $2 million debt facility from Ceniarth LLC for lending to them. The investment, which is its second round of fundraising, brings the total raised to $4million.

“We have 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,” said Wayne Hennessy-Barrett, CEO and Founder of 4G Capital.

Here Is All You Need To Know

4G Capital will use the investment for onward lending to its growing customer base of informal micro, small and medium-sized enterprises across Kenya and Uganda.

Why The Investor Invested

“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,” Diane Isenberg, Founder of Ceniarth said.

The firm and the investor 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.

A Look At What 4G Capital Does

Since its inception in 2013, 4G Capital has lent over 750,000 loans valued at $90m.
Over the last 12 months, revenue has increased by 97% and it has supported over 60,000 MSMEs.
By the end of this year, the firm would have lent $43.6m, surpassing all expectations. Repayment rates remain above national averages, at over 94% (without refinancing).
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.

‘‘We provide each client with a bespoke programme of business training which enables them to use the credit we provide to positively grow their business. We look at their current life and business stage to give them the relevant information to help them on their journey.
Conventional service providers see this as an insurmountable challenge. We see it as an opportunity to utilize data in ever smarter ways. Using our proprietorial machine learning system, we’ve found ways to use data from multiple sources to design credit products at scale which are optimized for segments, business risk, timescale and affordability,’’ 4G Capital noted on its website.

How To Apply For 4G Capital Loan

4G capital is a capacity-building microcredit company, with mobile network of field staff who use a tablet based credit management system to assess loan affordability through a predictive machine learning algorithm . The startup does not rely on third parties, whether Bank, internet or social media records .
It disperses first loans within 24 hours directly to the customers phone via mobile money. Customers use the startup’s credit to purchase inventory to get the best deals and make strong profits.
After repayment, customers can access repeat loans by SMS in under five minutes.
Loans are combined with face-to-face training delivered by field staff who teach progressive micro lessons hosted on their tablets.
Loan amounts can increase in line with customer business growth. The startup uses any type of mobile phone including text only feature phone to service both rural and urban markets.
It reaches micro entrepreneurs who lack smartphones or internet access when the customer needs its and where the market opportunity is greatest.

For more enquiries, contact 4G Capital at contact@4g-capital.com or Phone Number +254712653826

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world