Mauritius-based fintech venture Kuunda tracks informal and small businesses’ sales transactions to underwrite and disburse short-term credit and loans of one to 14 days weeks. The credit provides upfront cover on businesses’ regular sales of fuel, mobile airtime and inventory.
Kundaa operates in Tanzania, Uganda, Kenya, Malawi, Mozambique and Pakistan.
“We repeatedly see agents, micro to medium-sized businesses and consumers constrained by cashflow, not demand,” said Bruce Nsereko-Lule of Seedstars Africa Ventures, which reupped its investment in the company’s $7.5 million pre-Series A round. “Kuunda’s embedded overdraft and working-capital products unlock liquidity exactly where commerce happens — at the edge.”
Early-stage fintech investor Accion Ventures, which just closed its second fund, also reupped from Kuunda’s seed round. Other backers include South African bank Nedbank and South African venture capital firms E4E Africa and 4Di Capital.
The Portugal Gateway Fund, which invests in non-European businesses looking to set up a base in Portugal, also invested. The fund is a joint-venture between Africa-focused VC firm Kigeni and Portuguese venture investor Green One Capital.
Credit partnerships
Kuunda operates as an intermediary between companies that work with large numbers of informal retailers and agents, like cellular services providers and ride hailing apps, and financial services firms looking to increase lending in the informal economy. Its financial partners include microfinance agency Finca, Pakistan-based financial services firm Neem, and Côte d’Ivoire-based Mansa Bank. Its distribution partners include mobile money operators Wave and M-Pesa and Pakistan-based ride-hailing and delivery app Bykea.
“It has positioned itself as a full-spectrum infrastructure for embedded finance,” noted Accion Ventures’ Amee Parbhoo. “They’ve integrated into a number of partners and now offer a range of relevant and frictionless financial services.”
The company says it has disbursed $3 billion in credit and loans to more than 10 million users. It has a regular base of two million monthly customers.
“Kuunda’s data- driven behaviourally based credit scoring gives banks and capital providers the confidence to serve the informal economy at scale,” said Erik Van Veen of Portugal Gateway Fund. “By turning billions of digital transactions into actional risk insights, Kuunda makes last-mile lending sustainable, repeatable and profitable.”
