Ugandan fintech startup targeting semi-formal micro and small businesses, Numida, has raised $2.3 million in seed funding.
Investors who took part in the funding include Pan-African payments company MFS Africa, DRK Foundation, Equilibria Capital, Segal Family Foundation, and angel investors.
According to the company, the funding will enable them to expand aggressively in Uganda and pilot in a new market, preferably in West Africa, particularly Ghana. Furthermore, it plans to introduce additional financial services like payments, micro-insurance and deposits to its customers.
Founded in 2017, Numida offers risk-based pricing on an applicant’s first loan via a proprietary credit score. After that, businesses can access unsecured working capital loans of up to $3,500 in less than two hours. To date, it has provided more than $2 million in unsecured credit to 3,000 micro and small businesses in Uganda, disbursing around $250,000 per month. This is with outstanding collections, repayment rates and client retention.