4G Capital announced the completion of its second round of fundraising. The funding was secured by a $2 million debt from Ceniarth LLC, making the total raised to $4 million.
The company will use the investment for lending to its growing customer base of informal MSMEs across Uganda and Kenya.
Since the company was starred in 2013, 4G Capital has grown exponentially, lending over 750, 000 loans valued at $90 million. In 2019, the company’s revenue increased by 97 per cent as 4G Capital supported over 60,000 MSMEs.
By the end of 2020, 4G Capital will have lent $43.6 million surpassing all expectations. Without refinancing, repayment rates remain above national averages at over 94 per cent.
“The rapid expansion of mobile and technology-based financial services in emerging markets has the potential to provide critical capital to individuals previously excluded from the financial system. With this expansion comes great responsibility to ensure that customers understand and benefit from these services and are not exploited by providers focused more on growth than client impact. We are proud to support 4G Capital as a best-in-class financial lender that listens to the needs of the communities that it serves,” said Diane Isenberg, Founder of Ceniarth.
CEO and Founder of 4G Capital, Wayne Hennessy-Barrett, said: “We are incredibly honoured to welcome Ceniarth as our latest investor. Together, we share a fierce passion for improving conditions for the underserved and neglected businesses of the African economy by providing financial services that sustainably unlock potential and help communities. 4G Capital has surpassed all key performance targets for 2019, and Ceniarth’s investment will help us meet the demands of our growing customer base and continue our positive impact into the future – a fantastic way to end a great year.”
Over the course of the year, 4G Capital will continue to grow its network of physical branches across Uganda and Kenya, with an additional 34 branches across Uganda and 24 across Kenya bringing the network total to 150 branches.
Source: The Exchange