Tugende has successfully raised USD 10 million in debt and equity financing, primarily from Mobility 54, to bolster its operations and expand its impact on the MSME credit market in Africa.

Target Information

Tugende has successfully secured USD 10 million in debt and equity financing from a consortium of investors facilitated by Verdant Capital. Included in this funding round is a pivotal equity investment from Mobility 54, the Africa-focused investment arm of Toyota Tsusho Corp. This infusion of capital not only strengthens Tugende's balance sheet but also elevates its total assets beyond USD 30 million. Despite the challenges posed by the COVID-19 pandemic, Tugende has shown significant resilience, leading to a marked recovery in client payments close to pre-lockdown figures.

Since its establishment in 2010, Tugende has adeptly positioned itself to address the considerable financing gap faced by Micro, Small, and Medium Enterprises (MSMEs) in Africa, which is estimated at USD 331 billion. The company utilizes asset finance and cutting-edge technology to effectively serve its customer base. By the end of Q3 2020, Tugende had over 23,000 active clients, with more than 12,000 having successfully completed their lease-to-own agreements.

Industry Overview in Uganda

The credit landscape in Uganda, particularly for MSMEs, remains sharply challenged. Despite the recovery from lockdowns, these businesses often find themselves struggling to secure adequate fi