Verdant Capital arrages EUR 2.5 milion for Tugende
Tugende, the innovative fintech platform for MSME credit and asset-financing in East Africa, has closed an additional EUR 2.5 million in debt financing from a leading European impact investor whose mandate is to support the growth of MSMEs across the African continent. The investment strengthens Tugende’s balance sheet, allowing it to continue growing its portfolio and address a significant credit demand amongst MSMEs, particularly after the strict lockdowns of 2020 and 2021. Tugende continues to deliver this MSME support with award winning positive social impact to its clients and their beneficiaries.
A further accolade for Tugende’s business model was achieved when Tugende was one of three companies across Africa shortlisted for the Financial Inclusion Award by prestigious African Banker Awards. The awards are part of the official program of the African Development Bank Annual meetings held each year. The final decision on the award will take place at the official awards ceremony to be held at the Kempinski Accra on May 25th, 2022.
The MSME credit gap across sub-Saharan Africa amounts to more than USD 331 billion per year, with a gap of USD 37 billion in East Africa alone. Tugende is tackling this using asset finance, technology and industry leading data analytics to unlock growth for informal and formalizing businesses. Tugende’s business has emerged from the COVID-19 crisis on a strong and steady footing and is back on its high-growth trajectory. The company continues to expand its footprint in Uganda and Kenya and, in addition to its strong core package for motorcycle taxis, has increased its exposure to a broader range of income generating assets including four-wheeled vehicles, outboard motors (boat engines), and appliances—all for business use. Tugende continues to build its technology platform opening up efficiencies, new business opportunities for clients, and enhancing client loyalty.
Tugende has served over 52,000 clients with more than 20,000 having achieved ownership of at least one asset. More than 750 employees ensure the company remains the go-to provider of credit to MSMEs across East Africa and help keep Tugende’s market leading portfolio quality and cost of risk strong. Verdant Capital served as Tugende’s financial advisor and arranger with respect to the debt capital raise.