South African fintech company Lula, founded in 2014 by Trevor Gosling and Michael Foley, has secured ZAR 340 million (~USD 21 million) in funding from the Dutch development bank FMO. The investment aims to scale South African SME lending by expanding access to fast, technology-driven working capital.
Lula’s platform targets small and medium-sized businesses (SMEs) often overlooked by traditional banks. By providing local-currency financing, the lender helps businesses avoid the volatility of exchange rates while covering critical expenses such as salaries, inventory, and operational costs.
Track Record of Investor Confidence
The latest funding comes on the heels of Lula’s successful 2023 Series B round, which raised USD 35 million led by Lightrock, with participation from IFC, Quona Capital, DEG, and Triodos Investment Management. In late 2024, Lula secured an additional USD 10 million local-currency loan from IFC, strengthening its capital base.
“We aim to support SMEs in South Africa by providing flexible, technology-driven loans that traditional banks often overlook,” the company said. Lula’s growing track record demonstrates strong investor confidence in its fintech funding Africa model and its potential to transform SME access to capital.
Implications for the Market
With this new financing, Lula expects to increase loan disbursements, improve service speed, and broaden its reach across South African SMEs. Analysts note that this kind of funding signals growing confidence in working capital loans delivered through digital platforms, which could redefine lending in emerging markets.
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