NAIROBI, Kenya, March 16 – 4G Capital has completed its Series C funding round with Light rock, a global private equity fund, investing USD 18.5 million dollars.
Since its inception in 2013, 4G Capital has loaned over 1,750,000 small business working capital loans valued at over USD230 million.
The company has over 240,000 clients, 81 percent of whom are female, with 77 percent running micro and SME enterprises in rural areas.
The investment will allow 4G Capital to scale its last-mile finance and enterprise training solutions to micro and small enterprises (MSEs) in Kenya and Uganda, expanding its use of digital channels and data science to complement its hybrid ‘touch-tech’ approach.
The company will expand its Kuza retail finance service to help store-owners, FMCGs and distributors boost their sales.
Kuza is a pure fintech plug-and-play service, allowing distributors to stock entrepreneurs using 4G Capital’s credit, rather than traditional cash on delivery. Partnerships with P&G, Diageo, and other brands adopting the service have proven highly successful.
Wayne Hennessy-Barrett, CEO and Founder of 4G Capital said the capital will have a transformative effect in enabling the firm to scale the best products and services to the world’s most important sector.
“Lightrock and 4G Capital share a complete alignment of purpose and mission, they bring unrivaled experience of Africa and emerging markets,” he said,
Shakir Merali, Partner at Lightrock, join commented ‘Financial inclusion has not always translated into positive outcomes for customers. What is needed on the continent is investment capital to back companies with the mission of financial empowerment. 4G Capital provides liquidity to the vast market of economically generative businesses – the mobile phone repairers, hairdressers and food sellers – that dot the landscape of Africa. ”
“The systemic value of improving lives is compounded, as productive employment leads to economic outcomes and better education and health outcomes in the communities these businesses serve. That’s where 4G Capital plays. That’s why we believe they are doing necessary work and why we are excited to become a part of their growth journey.”
