South African digital lending infrastructure startup Kuunda has completed a US$5 million secondary share sale led by E4E Africa, returning capital to early investors while bringing the investment firm on board as a larger long-term shareholder.
Established in 2018, Kuunda is a B2B digital lending-as-a-service company that provides tailored liquidity solutions built through meaningful collaborative partnerships. By partnering with mobile money operators, POS network providers, e-commerce players and banks, Kuunda embeds credit products into existing digital platforms, using data-driven credit scoring to provide productive financing to mobile money agents, merchants, and consumers in emerging markets.
Disrupt Africa reported in October last year that the startup had raised a US$7.5 million pre-Series A round of funding, with E4E Africa among the participants alongside the likes of Portugal Gateway Fund, Seedstars Africa Ventures, 4Di Capital, Accion Ventures, and Nedbank.
Growth has continued since. Kuunda’s infrastructure has now disbursed more than 870 million loans, delivering over US$4.4 billion in credit to 14.6 million agents, merchants and consumers. The company is currently live in five markets, with launches planned in a further seven.
The new transaction sees E4E Africa expand its stake in the business, with existing investors Accion Ventures, Portugal Gateway Fund and Seedstars Africa Ventures also increasing their positions. Kuunda says the deal gives early backers a meaningful return, and shows African fintech companies can generate liquidity for shareholders well before an IPO or acquisition.
“This is an important milestone for Kuunda and our investors,” said Andrew Milne, Kuunda’s CEO. “Delivering a successful secondary at this stage reflects the strength of the business we’ve built – profitable, scalable lending infrastructure serving millions of people across Africa. We’re grateful to our early backers and excited to grow with a strong, aligned shareholder base.”
Bas Hochstenbach, managing partner at E4E Africa, said Kuunda was using technology, distribution and banking partnerships to deliver essential financial services where traditional institutions could not reach.
“Kuunda is an exceptional company, building a very healthy and fast-growing business while offering much needed products at fair prices to African small businesses and consumers,” he said.
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