Fintech firm 4G Capital has closed a second round of fundraising which was secured by a $2m debt facility from Ceniarth LLC, bringing the total raised to $4million.
The Nairobi-based fintech firm will use the investment to provide credit to micro and small enterprises (MSMEs) across Kenya and Uganda.
4G Capital CEO and Founder Wayne Hennessy-Barrett, CEO and Founder said Ceniarth LLC is a perfect match.
“We are incredibly honoured to welcome Ceniarth as our latest investor. Together, we share a fierce passion for improving conditions for the underserved and neglected businesses of the African economy by providing financial services that sustainably unlock potential and help communities. 4G Capital has surpassed all key performance targets for 2019, and Ceniarth’s investment will help us meet the demands of our growing customer base and continue our positive impact into the future – a fantastic way to end a great year.”
The firm began its operations in Kenya in 2013 by providing financial literacy training blended with unsecured working capital credit. 4G Capital has since has grown exponentially, lending over 750,000 loans valued at $90m.
Over the last 12 months, the firm’s revenue increased by 97 percent supporting over 60,000 MSMEs. By the end of 2019, 4G Capital says it will have lent $43.6m.
Repayment rates remain above national averages, at over 94% (without refinancing).
“The rapid expansion of mobile and technology-based financial services in emerging markets has the potential to provide critical capital to individuals previously excluded from the financial system”, said Diane Isenberg, Founder of Ceniarth.
“With this expansion comes great responsibility to ensure that customers understand and benefit from these services and are not exploited by providers focused more on growth than client impact. We are proud to support 4G Capital as a best-in-class financial lender that listens to the needs of the communities that it serves.”
In 2020, 4G Capital plans to grow its network of physical branches across Kenya and Uganda, with an additional 24 branches across Kenya and 34 across Uganda, bringing the network total to 150 branches.