Lulalend, a Cape Town, South Africa-based online automated provider of short-term funding for small and medium enterprises (SMEs), raised $6.5m in Series A financing.
The round was co-led by IFC and Quona Capital, with participation from existing investors Accion Venture Lab and Newid Capital.
The company intends to use the funds to scale operations.
Established in 2014 by co-founders Trevor Gosling and Neil Welman, Lulalend allows SMEs to apply for and receive funding within 24 hours via automated lending decisions. Leveraging data from alternative and online sources, the platform utilizes a proprietary scoring algorithm that allows it to evaluate applicants and provide funding to SMEs quickly.
Most of the funding provided by Lulalend to small and medium-sized businesses is used for inventory or equipment, renovations or marketing.