Zambia’s Rent To Own Secures USD 1.1 Mn Funding To Increase Portfolio Of Entrepreneurs
Zambian startup, Rent to Own (RTO) is determined to achieve its goal of providing productive-use assets to rural SMEs in Zambia. The startup has just raised a EURO 1 Mn (USD 1,121,849) in a new round of funding from the Seed Capital and Business Development facility of the Dutch Good Growth Fund (DGGF).
The Funding At A Glance
- The funding was led by the Seed Capital and Business Development facility of the Dutch Good Growth Fund (DGGF)
- DGGF, managed by Triple Jump BV is a fund of funds investment initiative from the Dutch Ministry of Foreign Affairs that invests in funds and financial intermediaries that provide capital to SMEs.
- Through its seed investment in RTO, DGGF will help support rural SMEs to improve livelihoods and develop sustainable income sources.
- According to an official disclosure, Rent To Own engaged Open Capital Advisors, a management consulting and financial advisory firm based in Africa, to provide investment-readiness and transaction advisory support for this deal.
- Own To Rent intends to use the funds primarily as working capital to double the company’s portfolio for rural Zambian entrepreneurs.
- Building upon convertible notes, Rent To Own provides high-impact assets to rural entrepreneurs and smallholder farmers in Zambia.
See Also: How International Organisations Are Helping Startups In Africa
Rent To Own At Glance
The startup, founded in 2010, claims to have financed over 7000 high-impact assets in Zambia and has achieved a 96% repayment rate since inception.
Offering a unique “all-in-one” package of uncollateralized financing, delivery, installation, and equipment training, the startup empowers its clients to grow their businesses and improve their quality of life.
RTO’s flexible, tech-enabled platform also provides a route-to-market for equipment suppliers and supports the rapid adoption of innovative assets, such as solar-powered irrigation pumps.
“We are extremely excited by the opportunity provided by DGGF to continue to focus on this mission and rapidly grow our loan book despite the harsh economic conditions we are currently experiencing in Zambia”, says Jeffrey Scheidegger, CEO.
Rent To Own raised USD 1.05 Mn last year in a seed round led by AHL Venture Partners. Due to a significant increment in the company’s investment, the investors were joined by two other firms – Small Foundation and Jordan Engineering.
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.