South African fintech Lulalend has raised $35 million in a Series B round led by Lightrock the global impact investor.
Other investors who participated were new investors such as the German development finance institution DEG, Triodos Investment Management, and Women’s World Banking Asset Management, as well as existing investors The International Finance Corporation (IFC) and Quona Capital.
“We’re truly grateful for the support and belief these global leaders in impact investing have placed in our business, and look forward to unlocking the great potential we believe exists at Lulalend through our partnership with them.
Above all else, we’re determined to ensure that this investment ultimately benefits the more than 2 million formal and informal SMEs in South Africa whose financial needs remain grossly underserved.” Trevor Gosling, Co-founder & CEO of Lulalend
The capital will be used to service the surging demand for the fast access to working capital it offers businesses, as well as accelerate the roll out of Lula, its new digital banking offering for SMEs.
“We believe that Lula will be a game changer for South African small business owners, enabling them to manage their entire cash flow from one highly intuitive digital platform. Simplifying their life, saving time and allowing them to focus on growing their business. Lula will offer a bank account specifically tailored for SMEs, an AI-driven cash flow management tool and real-time access to funding via our existing funding solutions.
Account opening can be done entirely online, meaning no time-consuming branch visits, and our Customer Experience team will deliver the fast, responsive and human service that is lacking from traditional banks.
I’m incredibly excited about the future of Lulalend and the positive impact we can have on South Africa’s SMEs, which as we know are so crucial to the nation’s economic development. With this additional capital available, and the support of our investors, we are now better placed than ever to deliver on our vision of driving financial inclusion and acting as a catalyst for growth across the SME sector.” Gosling concluded
