Grace Ashiru
Umba, a digital banking platform based in Kenya, has announced the successful securing of $5 million in debt financing to fuel its expansion plans and strengthen its lending operations across Africa.
The funding, sourced from a consortium of global impact investors and fintech-focused lenders, will allow Umba to scale its range of financial products, including personal loans, current accounts, and savings tools designed for underbanked consumers.
Founded in 2018, Umba delivers a comprehensive digital banking experience through mobile applications, targeting regions with limited access to traditional banking services. The startup primarily operates in Kenya and Nigeria, two of Africa’s most vibrant fintech markets.
“We’re excited to close this new debt facility, which provides us with additional resources to reach more customers and promote financial inclusion,” said Tiernan Kennedy, CEO and co-founder of Umba. “There is a significant opportunity to offer fair and accessible financial products to millions who remain underserved by the formal banking sector.”
The $5 million funding will be chiefly used to grow Umba’s lending portfolio, advance its credit scoring technology, and expand into new East and West African markets within the next year.
Debt financing is becoming an increasingly popular strategy among African fintech companies like Umba to finance their loan books without giving up equity — a move that highlights growing investor confidence in the sector’s long-term prospects.
“Umba’s data-driven underwriting approach and commitment to responsible lending really impressed us,” said one of the lead lenders, who preferred to remain anonymous due to regulatory considerations. “They are delivering sustainable impact while building a scalable business.”
Previously, Umba secured $15 million in a Series A equity round in 2022, with backing from prominent investors such as Costanoa Ventures, Monzo co-founder Tom Blomfield, and Palm Drive Capital.
As mobile banking adoption continues to surge across Africa, Umba’s latest funding underscores the ongoing momentum behind digital-first platforms aiming to revolutionize financial services for the continent’s next billion users.
