Rinchi
TechInAfrica – A South African digital lender based in Cape Town, Lulalend, has announced that it has raised a $6.5 million Series A round co-led by IFC and Quona Capital. According to the company’s CEO and Co-Founder, Trevor Gosling, the fund will be used to strengthen its tech and data team as well as to improve its capacity to reach more SMEs on the continent.
Lulalend’s loans size is ranging from $1500 to $70,000, for six to twelve months tenor. For monthly payments, it requires around one-sixth or one-twelfth of the total loan with monthly costs of 2 – 6%.
The service is provided for SMEs in Africa. Through its platform, they can apply for a loan online, requiring them to provide a bank account to receive a loan disbursement. Mostly, applied loans are processed automatically using Lulalend’s proprietary credit scoring tech.
As part of the series round, Quona Capital as the investor will join the company’s board.
“We believe Lulalend’s tech-enabled scoring, combined with their ability to provide funding in a quick and transparent way, has the potential to catalyze SME growth in South Africa,” said Johan Bosini, Quona Capital Partner as cited from techwak.com.ng.
According to Lulalend’s CEO, the company is planning to expand its solution in the future. However, for now, their focus will be on South Africa only. Gosling added, Lulalend’s primary target now is to generate revenue and increase lending volume.
Source: techawk.com.ng
