4G Capital, a Nairobi, Kenya-based African neobank, completed its $18.5m Series C funding round.
Lightrock invested in the round.
The company intends to use the funds 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. 4G Capital 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.
Founded in 2013 by Wayne Hennessy-Barrett, CEO, 4G Capital is a neobank that provides clients with customized business training programs and credit guidance via mobile apps and in-person via a nationwide network of branches. The company employs over 700 employees across Kenya and Uganda. Since its inception in 2013, the company has agreed over 1,750,000 small business working capital loans valued at over $230 million. It has over 240,000 clients, 81% of whom are female, and 77% are running micro and SME enterprises in rural areas. 4G Capital is now scaling in and expanding its suite of products and services in East Africa.
In conjunction with the funding, Shakir Merali, Partner at Lightrock, joined 4G Capital’s Board.