South African based lending Startup, Lulalend, has raised $6.5 million Series A funding from IFC and Quona Capital.
Founded in 2014 by Trevor Gosling (CEO & Co-Founder) and Neil Welman (CFO & Co-Founder), Lulalend provides funds to empower businesses across South Africa. The company is South Africa’s first online and automated provider of short-term funding for Micro Small and Medium Enterprises (MSMEs). Lulalend lends exclusively to these businesses, and most of its funding is used for inventory or equipment purchases, renovations, or marketing.
Lulalend uses its proprietary technology to ensure that lending decisions are largely automated, and funding can be provided within 24 hours. It leverages data from alternative and online sources, such as electronic bank accounts, payment gateways, online accounting companies, e-commerce marketplaces, and any other partners that could provide additional data.
The company feeds this data in an innovative scoring algorithm that allows them to evaluate applicants and provide funding quickly, conveniently, and transparently.
According to CEO Trevor Gosling, Lulalend will use the round to build its tech and data team and improve its ability to reach more SMEs in South Africa.
As part of the $6.5 million Series A funding, investor Quona Capital will join LulaLend’s board
“We believe Lulalend’s tech-enabled scoring, combined with their ability to provide funding in a quick and transparent way, has the potential to…catalyze SME growth in South Africa,” said Quona Capital Partner Johan Bosini.
