4G Capital, an African neobank, has closed a $18.5 million Series C funding round led by global private equity firm Lightrock.
4G Capital has made over 1,750,000 small business working capital loans worth over $230 million since its inception in 2013. The company has over 240,000 clients, with 81 percent of them being women and 77 percent of them running micro and small businesses in rural areas.
The investment, according to 4G Capital, will allow it to expand its last-mile finance and enterprise training solutions to micro and small enterprises (MSEs) in Kenya and Uganda, while also complementing its hybrid “touch-tech” strategy with the use of digital channels and data science.
Kuza retail finance, which allows distributors to provide merchandise to stores utilizing 4G Capital’s credit rather than traditional cash on delivery, will also be expanded.
P&G, Diageo, and other companies have partnered with 4G Capital. It offers unsecured business loans with no collateral, as well as enterprise training and digital solutions. To reduce default risk, the organization blends relationship management with proprietary AI technology.
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