A fintech firm providing credit and asset financing for micro, small, and medium-sized businesses (MSMEs) in East Africa, TUGENDE, has raised $10 million from existing and new investors, led by Partech and Women’s World Banking. Among its most famous customers are people who buy motorcycles with loans from the company.
KAMPALA | LIFESTYLE UGANDA (https://lifestyleuganda.com/) — The fintech company TUGENDE, which provides credit and asset financing for micro, small and medium sized businesses (MSMEs) in East Africa, has received $10 million in capital from existing and new investors, led by Partech and Women’s World Banking.
The firm is primarily known in Uganda for lending money to people who purchase motorcycles.
The US-based Partech Investment Corp. is a leading provider of funding to about 200 companies in over forty different countries at various stages of their development.
A statement by CJ Juhasz, Chief Investment Officer of Women’s World Banking Asset Management regarding the new capital provided to TUGENDE to expand its regional reach, is provided below.
“We’re excited to join Tugende’s journey. Tugende is a leader in reaching and de-risking underserved individuals and businesses for financial services to grow and create jobs. Women’s World Banking is dedicated to economic empowerment, and we are particularly keen on investing at the intersection of mobility and finance, as the empowerment potential for individuals, especially women, is multiplied. We look forward to teaming up with Tugende as it drives financial inclusion pan-Africa and increases the number of women served in its business ecosystem.”
Partech adds to Tugende’s shareholding diversity and complements the experience and skills that each contributes to the company’s growth.
Together with Tugende’s recent debt closing, the combined $10 million investment strengthens Tugende’s balance sheet, enabling it to increase portfolio growth and meet the significant credit demand among MSMEs, particularly after strict lockdowns in 2020 and 2021.
TUGENDE co-founder and CEO Michael Wilkerson made the following statement.
“Tugende is committed to innovation and partnerships that remove barriers for people and businesses to build better futures.”
”With partners such as WWB on board, Tugende will benefit from the added expertise in delivering Tugende’s Gender Action Plan and activating more women entrepreneurs in Tugende’s ecosystem.”
As TUGENDE expands into Uganda and Kenya, it has acquired more income generating assets besides its strong core package of motorcycle taxis, including four-wheeled vehicles, outboard motors (boat engines), and appliances, which are all for business purposes.
Tugende’s client financing packages include comprehensive insurance coverage (product, medical, life), safety equipment, ongoing support, and a digital credit profile that allows clients to earn top-up loans and enhanced insurance benefits as a result.
In May this year, TUGENDE won the 2022 Financial Inclusion Award at the 16th edition of the African Banker Awards Gala Ceremony held at the Kempinski Hotel, Accra, Ghana on 25 May. It was a part of the African Development Bank’s Annual Meetings programme and was held under its High Patronage.
