FinTech news in Numida category

To bridge the gap, Uganda-based fintech Numida has opted to focus its digital lending business on small enterprises as part of its strategy for driving financial inclusion in emerging markets. Spurred by an increase in demand for its services, Numida is currently eyeing growth opportunities beyond Uganda, saying that it has a proven business model that can be adopted across the continent to unlock the potential of MSMEs. The growth plans come against the backdrop of a $12.3 million pre-Series A equity-debt funding round led by Serena Ventures with participation from Breega, 4Di Capital, Launch Africa, Soma Capital and Y Combinator, VCs that are all making their first investment in Uganda. Micro, small and medium-sized enterprises (MSMEs) across Africa make up the bulk — over 90% — of businesses in the continent but are still marginalized in accessing credit from formal institutions because of the nature of their operations; for instance, many often lack the kind of collateral that is acceptable by banks.