ImpactAlpha, April 15 – Kampala-based Numida launched five years ago to provide microfinance institutions better data to underwrite loans to small and informal businesses. When the microfinance lenders proved reluctant to change their approaches, the fintech itself stepped into micro and small business lending.
Numida has provided $2 million in micro-loans to 3,000 micro and small businesses in Uganda, TechCrunch reports.
The fintech’s $2.3 million round was led by MFS Africa, which develops software to connect digital-payments and mobile-money platforms, with participation from DRK Foundation, Equilibria Capital and Segal Family Foundation.
In Africa, recent deal activity shows fintechs are investing in other fintechs. Nigeria’s digital payments unicorn Flutterwave took a stake in digital “savings circle” venture Bankly. Paystack, another Nigerian digital payments company, was acquired last year by Stripe.