Ugandan Tugende, a technology-enabled asset finance company, has raised $3.6 million equity financing in its Series A round of funding.
Investors who took part in the round include San Francisco and Paris-based VC firm, Partech, and Enza Capital.
The investment follows the $6.3 million raised in November 2020 and led by Toyota Tsusho investment fund Mobility 54. This brings Tugende’s total Series A financing to $9.9 million. Since its inception, the firm has raised more than $20 million from debt partners like Partners Group Impact Investments and the U.S. Development Finance Corporation.
The company uses asset finance, technology and a customer support model to help micro, small and medium-sized enterprises own income-generating assets.
While primarily based in East Africa, the company wants to tackle the $331 billion credit gap facing these businesses across Africa. Its core product is for motorcycle riders in Kenya and Uganda, with a lease-to-own or hire-purchase package. Tugende currently has more than 43,000 across Kenya and Uganda.