Tugende closes pre-series B funding, raising a total $10m in equity and debt

Tugende, the fintech platform for MSME credit and asset-financing in East Africa, closed a pre-series B equity funding round from existing shareholders led by Partech and two new investors, including Women’s World Banking.

Along with a recent debt closing, the combined $10 million investment further strengthens Tugende’s balance sheet, allowing it to increase portfolio growth and address a significant credit demand amongst MSMEs, particularly after the strict lockdowns of 2020 and 2021.

CJ Juhasz, chief investment officer of Women’s World Banking Asset Management (WAM) states, “We’re excited to join Tugende’s journey. 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.”

The pre-series B equity investment builds on debt financing Tugende closed from Cordaid Investment Management, an European impact investor whose mandate is to support the growth of MSMEs across the African continent. Tugende is in the process of drawing down existing debt funding commitments from a variety of impact and MSME-focused investors.

The company continues to expand its footprint in Uganda and Kenya and, in addition to its strong core package for motorcycle taxis, has increased its exposure to a broader range of income generating assets including four-wheeled vehicles, outboard motors (boat engines), and appliances – all for business use.

Tugende is a digitally enabled lender specialising in asset finance and credit scoring. It has supported more than 55,000 clients in Uganda and Kenya to own income generating assets and build credit profiles to unlock additional opportunities as they grow their business.

Verdant Capital served as Tugende’s financial advisor and arranger with respect to its equity and debt capital raises.