Tugende, a Ugandan startup has successfully raised $3.6M in series A extension to meet the demand for its asset finance products led by San Francisco and Paris-based VC firm, Partech, with Enza Capital and some unnamed angel investors participating.
Tugende, a technology-enabled asset finance company in East Africa with over 460 staff and have served over 40,000 clients and are rapidly growing and innovating, was founded by Michael Wilkerson in 2012.
Its core asset finance packages include medical and life insurance, training, safety equipment and digital credit profiles in addition to affordable asset financing for SMEs.
In addition to its first product of motorcycle taxis, Tugende has broadened the productive assets it finances to boat engines, cars, refrigerators and other income generating equipment and is also currently piloting financing for e-mobility assets.
The investment, which was agreed and structured in 2020, is an extension of Tugende’s Series A, for which the first close was announced in September 2020, and led by Toyota Tsusho’s Mobility 54. This brings tugende total amount of equity capital raised for Series A to $9.9M.
The new funding will be deployed immediately by Tugende to keep up with its intense organic word-of-mouth demand and will support the closure of new debt capital to fuel Tugende’s strong portfolio growth in Uganda and Kenya.
Michael Wilkerson, Tugende’s CEO said “It’s an honor to bring on board additional top caliber investors, both Partech and Enza have great records of partnering with their investees to drive strong growth, particularly by accelerating technology and innovation and we are thrilled to be working together as we continue our journey.”
Tugende is tackling the USD 331 billion credit gap MSMEs face across Africa. Tugende aims to ensure millions of self-driven SMEs can dramatically increase their household wealth, economic stability and keep building a better future for their families.