Nairobi headquartered Fintech firm 4G Capital has announced the completion of its second round of fundraising which was secured by a $2m debt facility from Ceniarth LLC, bringing the total raised to $4million.
4G Capital says it will use the investment to provide credit to micro and small enterprises (MSMEs) across its key markets; Kenya and Uganda.
The firm began its operations in Kenya in 2013 by providing financial literacy training blended with unsecured working capital credit. 4G Capital has since has grown exponentially, lending over 750,000 loans valued at $90m.
Over the last 12 months, the firm’s revenue increased by 97% supporting over 60,000 MSMEs. By the end of this year, 4G Capital says it will have lent $43.6m, surpassing all expectations. Repayment rates remain above national averages, at over 94% (without refinancing).
“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”, said Diane Isenberg, Founder of Ceniarth. “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.”
Wayne Hennessy-Barrett, CEO and Founder of 4G Capital, 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.”
In 2020, 4G Capital plans to grow its network of physical branches across Kenya and Uganda, with an additional 24 branches across Kenya and 34 across Uganda, bringing the network total to 150 branches.