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Ugandan Asset Financing Platform Tugende Raises Pre-Series B Round

June 20, 2022

Tugende, an East African fintech platform that offers asset financing and digital services to small businesses, is thrilled to announce that it has closed a pre-Series B investment round. The financing, which was agreed upon in March and published publicly today, was led by Partech Africa, a current investor. Existing investors, such as Mobility 54, Enza, and Global Partnerships, were joined by new investors, such as the global financial inclusion fund Women’s World Banking Capital Partners II (WWBCP II).

The extra equity funding will enable Tugende to keep its growing pace, continue the rollout of digital-first products, and expand its offerings for new and returning consumers, as well as their communities. The investment, structured in the first quarter of 2022, will further strengthen Tugende’s balance sheet and shareholder base in preparation for a forthcoming Series B financing. In late 2020 and early 2021, Tugende secured $9.9M in Series A funding led by Mobility 54 and Partech Africa, with participation from Global Partnerships, Enza Capital, and other angel investors.

Why The Investors Invested

Tugende has garnered considerable traction since it was founded. So far, Tugende has served over 55,000 customers and is expanding geographically with 23 branches in Uganda and 10 branches in Kenya and more than 900 staff.

“We’re excited to join Tugende’s journey” said CJ Juhasz, Chief Investment Officer of Women’s World Banking Asset Management. “Tugende is a leader in reaching and de-risking underserved individuals and businesses for financial services to grow and create jobs. Women’s World Banking is dedicated to economic empowerment and we are particularly keen on investing at the intersection of mobility and finance, as the empowerment potential for individuals, especially women, is multiplied. Tugende’s leadership is visionary, cares deeply about its mission, and brings the experience to achieve its ambitious plans. We look forward to teaming up with Tugende as it drives financial inclusion pan-Africa and increases the number of women served in its business ecosystem.”

“Tugende is committed to innovation and partnerships that remove barriers for people and businesses to build better futures,” said Tugende CEO Michael Wilkerson. “With partners such as WWB on board, Tugende will benefit from the added expertise in delivering Tugende’s Gender Action Plan and activating more Women entrepreneurs in Tugende’s Ecosystem.

Women’s World Banking Asset Management (“WAM”) invests in innovative inclusive finance companies in emerging markets, guiding them to capture the large market share of financially underserved women and the large talent pool of women staff and leaders. The first Fund established by WAM was a pioneer in gender-focused impact investing in inclusive financial service providers. WWBCP II enlarges the gender-focused investment approach in innovative financial service providers by establishing a specialised technical assistance centre to aid portfolio companies in achieving gender inclusion objectives.

A Look At What Tugende Does

Tugende, a company founded in 2012, helps Micro, Small, and Medium-Sized Enterprises (MSMEs) acquire income-generating assets through asset finance, technology, and a strategy of high-touch customer care.

Tugende’s proven approach enables informal entrepreneurs in Africa to 1) own income-generating assets, 2) establish a verifiable digital credit profile, and 3) have access to future prospects, such as discounts, cellphones, e-commerce opportunities, and on-demand credit lines. Motorcycles, three-wheelers, minibuses, automobiles, freezers, boat engines, and other company assets are Tugende’s primary products.

All packages include product and medical and life insurance, safety equipment, continuing assistance, and a digital credit profile that enables successful clients and their communities to qualify for additional opportunities, such as top-up loans and enhanced insurance.

Tugende has recovered strongly from Covid-19-related lockdowns in Uganda and Kenya, launching new products and locations, and winning both the Inclusive Fintech 50 award in 2021 and the 2022 Financial Inclusion award at the African Bankers Awards in recognition of its profound social impact and support for clients and staff during Covid’s worst economic shocks.

Tugende asset platform Tugende asset platform

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh

Uganda’s Tugende Secures $6.3m In Partech-backed Investment Round

April 1, 2021

The Ugandan leasing company, Tugende, dedicated to the capital leasing of transport vehicles (motorbikes-taxis, cars) has obtained a financing of $3.6 million in a round led by Partech Partners, a venture capital firm active in Africa and Enza Capital which operates out of Kenya. The latest investment is coming after Tugende secured a $6.3 million series A financing round in October 2020 from the Japanese Toyota.

“Tugende’s focus has always been on meeting our clients where they are today, and finding win-win ways to grow together,” said Tugende CEO Michael Wilkerson. “We started with three motorcycle taxi clients, a tiny office without water, and many negative perceptions about lending to the informal sector and motorcyclists in particular.”

Here Is What You Need To Know

The investment, which is an extension of the $6.3 million Series A round raised last year and led by Toyota Tsusho investment fund Mobility 54, brings Tugende’s total Series A financing to $9.9 million.

The new investment will help Tugende further enhance its technology platform, both for internal operations and client-facing offerings — including Tugende’s transparent, dynamic credit score all clients already receive automatically.

Tugende will also use the capital to further grow its core financing product for motorcycle taxi drivers and accelerate its diversification into other MSME asset finance products including equipment for retails shops, agriculture, and further mobility assets, including e-mobility.

Mobility 54 and its group network will help Tugende with further market expansion, partnerships, and technology development.

Tugende has previously raised more than $20M in debt capital to grow its portfolio. Current debt partners include Partners Group Impact Investments, U.S. Development Finance Corporation, Symbiotics, Frankfurt School Financial Services, ADA Microfinance, Agora, Yunus Social Business, Global Social Impact Fund, and Oikocredit.

Why The Investors Invested

“Last year, in the midst of a pandemic, we decided to invest in Tugende. The company combines technology and strong operations to help professionals grow their businesses. We will help Michael and his team strengthen the technology platform, refine their model and expand into new markets, ”said Tidjane Deme, Partner at Partech.

“Tugende has demonstrated its ability to carry out sustained entrepreneurial activity thanks to its activity of financing productive assets for entrepreneurs in the informal sector […] We are delighted to support it in this phase of rapid growth”, indicated Mike Mompi , partner at Enza Capital.

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 43,000 clients served, Tugende is tackling the $331 billion credit gap MSMEs face across Africa.

Outside of 2020, the company has more than doubled its work team each year since 2012 and currently has more than 500 full-time employees.

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.

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

Uganda’s Tugende Secures $6.3m In Toyota Tsusho-backed Series A Investment Round

October 6, 2020

Tugende, a technology-enabled asset finance company operating in Uganda and Kenya, today announced the completion of a USD $6.3M Series A investment round, led by Toyota Tsusho investment fund Mobility 54. Other participants in the round were U.S.-based Global Partnerships’ Social Venture Fund, current shareholders including Denali Venture Philanthropy and Segal Family Foundation and new angel investors.

“Tugende’s focus has always been on meeting our clients where they are today, and finding win-win ways to grow together,” said Tugende CEO Michael Wilkerson. “We started with three motorcycle taxi clients, a tiny office without water, and many negative perceptions about lending to the informal sector and motorcyclists in particular.”

Here Is What You Need To Know

The new investment will help Tugende further enhance its technology platform, both for internal operations and client-facing offerings — including Tugende’s transparent, dynamic credit score all clients already receive automatically.
Tugende will also use the capital to further grow its core financing product for motorcycle taxi drivers and accelerate its diversification into other MSME asset finance products including equipment for retails shops, agriculture, and further mobility assets, including e-mobility.
Mobility 54 and its group network will help Tugende with further market expansion, partnerships, and technology development.
Tugende has previously raised more than $20M in debt capital to grow its portfolio. Current debt partners include Partners Group Impact Investments, U.S. Development Finance Corporation, Symbiotics, Frankfurt School Financial Services, ADA Microfinance, Agora, Yunus Social Business, Global Social Impact Fund, and Oikocredit.

Why The Investors Invested

Mobility 54 is a joint venture of Toyota Tsusho and its group company CFAO, with a focus on investing in the next generation of mobility across Africa and promoting synergies across its network.

“We are extremely delighted to participate in this investment for Tugende,” said Takeshi Watanabe, CEO of Mobility 54. “Financial inclusion for MSMEs and individual business entrepreneurs is a critical success factor for sustainable development across African economies. Tugende has proven commercial viability and is also a leader in terms of innovation, execution, and deep respect for its clients and their ambitions.

“In addition, we as Toyota Tsusho / CFAO Group are very excited to work with the CEO Michael Wilkerson as well as his excellent team — on the ground, side-by-side, and under a shared vision, to realize the geographical expansion of Tugende, to continue developing innovative value-added services for its clients, and to build together opportunities for long term growth for informal and MSME entrepreneurs,” Watanabe said.

On the other hand, the Global Partnerships/Eleos Social Venture Fund (SVF) is an impact-first fund investing in early-stage social enterprises to expand opportunity for people living in poverty in Eastern Africa. The fund was created to address the “pioneer gap” by supporting early stage social enterprises with a combination of investment capital and Board-level advisory support.

According to Jim Villanueva, Managing Director of Global Partnerships’ Social Venture Fund:

“Tugende consistently demonstrates a commitment to providing high-impact services to boost the incomes of its low income customers so we are thrilled to be part of this funding round.”

“Even amidst the pandemic, when there was a temporary ban on motorcycle taxi service in Uganda, Tugende demonstrated disciplined management of impact and operational sustainability, preparing them for rapid growth as the market re-opens,” he further said.

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.

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