Hilda Moraa - Afrikan Heroes

Nigerian VC Firm Pours 7-Figure Seed Funding Into Kenyan Fintech Startup, Pezesha

September 8, 2021

Pezesha, a Kenyan fintech startup that is building scalable lending infrastructure for SMEs and institutions, has closed a seven-figure seed extension funding round as it seeks to grow across Africa.

GreenHouse Capital led the deal, which also included on-lending liquidity support from Venture Garden Group, GreenHouse Capital’s sister firm. Pezesha’s continuous expansion across Africa and objective to promote access to cheap working finance for SMEs will be aided by the cash, which follows previous seed investments from Consonance in 2018 and Seedstars last year.

*Hilda Moraa, founder and chief executive officer (CEO) of Pezesha*

“We are delighted to have GreenHouse Capital join the Pezesha family. We are aligned in vision as well as our commitment to solving the working capital challenges that are preventing African SMEs from achieving their full growth potential,” said Hilda Moraa, founder and chief executive officer (CEO) of Pezesha.

“GreenHouse Capital’s investment will catapult our growth by enabling us to scale our existing partnerships with the likes of Twiga Foods, Jumia, Marketforce, and Popote Pay, among others. More so, the investment will unlock our vision of building the operating system to power embedded finance in Africa.”

Why The Investor Invested

Pezesha is breaking down barriers to SME finance by taking an ecosystem approach to the problem of access to capital, according to Ruby Nimkar, principal of GreenHouse Capital.

“Their embedded finance model is truly groundbreaking, and we have full confidence in Hilda and the talented team at Pezesha to take their model into new markets and continuously close the SME financing gap across Africa,” she said.

A Look At What The Startup Does

Pezesha, which began operations in late 2016, has built a comprehensive digital financial infrastructure that connects small and medium-sized businesses to working capital provided by banks, microfinance institutions, and other financial institutions or networks.

The Capital Markets Authority (CMA) granted the startup regulatory license, and it also became the first Kenyan business to successfully depart the CMA sandbox with a letter of no objection to operate in Kenya. Pezesha, which is already functioning in Kenya, Ghana, and Nigeria, will start in Uganda later this month and hopes to expand after funding a seed extension amount.

Pezesha Kenyan startup funding Pezesha Kenyan startup funding

Kenya Admits Blockchain And Foreign-stock-trading Startups Into Sandbox Regime

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

Kenya-based Pezesha Wins 2020 AFI Inclusive Fintech Showcase

December 16, 2020

The Nairobi based fintech, Pezesha has won this year’s AFI Inclusive FinTech Showcase for its leading innovation in financial inclusion. Pezesha’s entry shows the extent it has impacted the ecosystem by offering a digital platform that allows micro, small, and medium-sized enterprises (MSMEs) the opportunity to be linked with investors such as banks, microfinance intuitions, and retail lenders that are looking to drive MSMEs productivity and growth. Hilda Moraa, founder and CEO of Pezesha highlights the startup’s participation in helping MSMEs across sub-Saharan Africa adding that “we are tackling the $328-billion financing gap for MSMEs across sub-Saharan Africa … and the more than 50 million businesses that have been excluded and underserved.”

The 2020 AFI Inclusive FinTech Showcase allows fintech startups that utilise groundbreaking technology to address financial inclusion by developing innovative financial services targeted at underbanked communities. The showcase is an initiative operating under the 2018 Sochi Accord with AFI’s membership that aims to participate in systemic dialogue-driven platforms and partnerships with fintech firms and technology providers that regulate policies.

In November, 12 fintech finalists were selected for the 2020 AFI Inclusive FinTech Showcase. The finalists were invited to present their innovative solutions that address the consequences of Covid-19 and contribute to the future of financial inclusivity. The top three winners of the showcase were announced and will participate in the AFI’s Public-Private Dialogue platform and receive a one-year membership to Luxembourg House of Financial Technology (LHoFT).

Pezesha focuses on underserved markets in Sub-Saharan Africa and aims to assist MSMEs in reaching their needed capital to ensure growth in their businesses. It also produces credit scores collected from supplies and partners through alternative transactional data. The credit scores allow partners to access credit to purchase any additional inventory. The benefits of the credit scores that are financed by investors who use algorithms to allow risk diversification and lending to secured MSMEs says Moora, noting that “everyone benefits in our value chain ecosystem: lenders can optimize their capital; suppliers can increase their network of merchants, and merchants can grow their inventory.”

Pezesha encourages MSMEs to use the platform to expand their knowledge on how to increase credit scores through digital platforms and how to improve their digital presence. In addition, the fintech provides tools for customers to safely expand their business. Pezesha, launched in 2017 has reportedly connected over 20 000 youth MSMEs to working capital which resulted in the creation of over 1 000 formal sector jobs and 5 000 informal sector jobs. In addition, since its launch, Pezesha has funded over 75 000 loans to MSMEs, educated more than 200 000 MSMEs, and disbursed over $2 million throughout Kenya. As part of efforts to expand its operations, it partnered with Google, PesaPoint, Mastercard, and Letshego with the aim of expanding its reach to include people with disabilities and victims of gender-based violence.

The top three winning fintechs in this year’s AFI Inclusive Fintech Showcase includes the France-based multinational technology company, Idemia which came second. The tech startup assists low-income and vulnerable communities through its platform that makes use of digital identification that supports the disbursement of funds and includes government subsidies. Idemia’s platform creates digital identities by implementing biometric data which includes facial and fingerprint identification. Digital identities enable access to a range of financial services, including branchless banking.

Another Kenya-based social enterprise, Arifu came third in the Showcase. The social enterprise consists of a smart personal learning assistant and content marketplace. Arifu operates through mobile phones via SMS, WhatsApp, and Facebook Messenger and provides advice and financial skills training to vulnerable groups such as farmers, youth, women, and MSMEs. Users are able to gain insight into new skills, products, and services as well as have the opportunity to earn rewards through the platform. A reported 1.5 million people accessed Arifu’s services. The top three finalists were selected to participate in AFI’s Public-Private Dialogue platform and awarded a one-year membership to Luxembourg House of Financial Technology (LHoFT) that will provide practical training, education, and research services for the FinTech community.

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