East Africa Tech Startup Tugende Picks Verdant Capital Financial Advisor

Verdant Capital serves as Tugende’s financial advisor and arranger for its equity and debt capital raises.

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The transaction is the most recent for the award winning fintech and financial inclusion investment banking franchise of Verdant Capital.

Partech Africa, a member of the Partech Group, a technology venture capital fund, and Enza Capital invested in the $3.6 million extension round – agreed and structured in 2020 – bringing the total Series A volume to USD 9.9 million.

This adds to the first close which was led by Mobility 54, the Africa-focused venture capital entity backed by the Toyota Group as well as $12 million of debt financing raised over the last 18 months, through institutional investors from the UK, Germany, Switzerland, the Netherlands and South Africa.

Verdant Capital serves as Tugende’s financial advisor and arranger for its equity and debt capital raises.

The MSME credit gap across sub-Saharan Africa amounts to more than $331 billion per year, with a gap of $37 billion in East Africa alone. The growth of innovative and technology enabled business models, such as Tugende’s, are helping fill the credit gap left by traditional banks. The capital raises for Tugende strengthen its balance sheet and allow the expansion of its loan portfolio.

Having built its leading position financing boda bodas (motorcycle taxis) in Uganda, Tugende launched its Kenyan operations in late 2019, kick-starting its regional expansion, while continuing to add new asset products for other types of informal sector clients.

The equity investments and partnerships with leading equity firms will also accelerate Tugende’s technology development and organisational growth.

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