Data indicate a $330 billion financing gap for the 90% of African businesses that are small enterprises, making access to finance one of the main growth inhibitors for small businesses.
This is the imbalance that Kenya’s integrated finance fintech Pezesha is attempting to fill as it expands into Nigeria, Rwanda, and Francophone Africa following an $11 million pre-Series A equity-debt round led by Women’s World Banking Capital Partners II and including cooperation from Verdant Frontiers Fintech Fund, cFund, and Cardano blockchain builder Input Output Global (IOG). Talanton and Verdant Capital Expert Funds also contributed $5 million to the round.
The fintech’s new growth strategy is in line with its goal of expanding its embedded finance service beyond its existing markets, such as Ghana and Uganda, in order to close the financing gap that affects millions of MSMEs in these countries.
Founded in 2017 by Hilda Moraa, Pezesha has built a scalable digital lending infrastructure that allows both traditional and non-traditional financial institutions to offer working capital to MSMEs.
“The opportunity and impact in solving working capital problems for SMEs are huge. [We are] solving the root cause, which is information asymmetry issues, to ensure quality and responsible borrowing. Pezesha solves this through our robust API driven credit scoring technology,” Moraa, also the CEO told TechCrunch.