Tugende secured USD 9.9 million in Series A funding to enhance its position as a leading MSME lender in East Africa, with investments led by Partech Africa and Enza Capital.

Target Information

Tugende is a prominent technology-enabled lender focusing on micro, small, and medium enterprises (MSMEs) in East Africa. Recently, the company secured an additional USD 3.6 million in equity funding, bringing the total Series A capital raise to USD 9.9 million. This funding round was primarily led by Partech Africa, part of the global Partech Group, alongside Enza Capital, an early-stage venture fund dedicated to strengthening businesses that effectively utilize technology while addressing social challenges.

This latest investment complements an earlier financing round led by Mobility 54, a venture capital firm with ties to the Toyota Group specifically targeting opportunities within Africa. The capital influx enhances Tugende's financial stability, enabling access to a significant debt pipeline from esteemed international financial institutions, while also bringing on board strategic partners to bolster Tugende’s existing expertise. These partnerships are expected to facilitate rapid growth within East Africa and further expansion across the continent.

Industry Overview in East Africa

The MSME credit gap in sub-Saharan Africa exceeds USD 331 billion annually, with East Africa alone accounting for a substantial USD 37 billion of this deficit. This environment presents substantial opportunities for companies like Tugende, which have successfully established them