Access to finance remains a persistent challenge for small businesses across Africa, with a financing gap estimated at $330 billion. These enterprises make up 90% of the continent’s businesses, and many struggle with inefficient financial systems and limited access to credit.Pezesha, a digital lending platform based in Kenya, aims to address this gap. The company has raised $11 million in a pre-Series A funding round, which includes both equity and debt components.
Key contributors include Women’s World Banking Capital Partners, Verdant Frontiers Fintech Fund, and a blockchain development firm. Additional debt funding was provided by Talanton and Verdant Capital Specialist Funds.The funds will support Pezesha’s expansion into new markets, including Nigeria, Rwanda, and Francophone Africa, as well as its continued operations in Uganda and Ghana. The company is focused on enabling micro, small, and medium-sized enterprises (MSMEs) to access working capital and streamline their financial processes.
Transforming Access to Business Financing
Launched in 2017, Pezesha provides digital infrastructure that allows financial institutions to offer loans to SMEs. The platform integrates with partners’ systems, offering features like real-time loan approvals and credit scoring. Its technology-driven solutions help businesses overcome barriers to responsible borrowing and gain access to much-needed financing.Pezesha partners with over 20 organizations, including companies in the fast-moving consumer goods (FMCG) sector. These collaborations have allowed it to reach more than 100,000 businesses. The loans, which can go up to $10,000, are offered at competitive interest rates with repayment terms extending up to a year.The company is also diversifying its offerings, moving beyond its FMCG-focused beginnings. It plans to target sectors like construction and telecommunications while enhancing its lending platform to provide additional features for businesses.
Expanding Liquidity Sources
To meet the growing demand for loans, Pezesha is tapping into a diverse range of funding sources, including local and international banks, high-net-worth individuals, and decentralized finance platforms. The company’s goal is to create $100 million in annual financing opportunities for African businesses.Pezesha has also forged strategic partnerships to expand its impact. A recent collaboration with a blockchain firm aims to establish a peer-to-peer financial system tailored for Africa. The partnership is expected to unlock new avenues for affordable lending and strengthen Pezesha’s ability to scale its services across the continent.
Empowering Women Entrepreneurs
Pezesha has a strong focus on supporting women-owned businesses, a segment often excluded from traditional financial services. By leveraging its lending infrastructure, the company aims to provide accessible and affordable financing solutions tailored to the unique challenges faced by female entrepreneurs.The company’s leadership remains committed to its mission of bridging Africa’s financing gap. According to the CEO, Pezesha’s business model and focus on responsible lending have positioned it as a sustainable and impactful player in the financial services sector.With its latest funding, Pezesha is poised to deepen its presence across Africa and drive economic growth by empowering small businesses with the financial tools they need to thrive.
