Uganda’s Numida raises $12.3mn from Serena Ventures, others

Uganda-based fintech startup Numida has successfully raised a $12.3 million pre-Series A financing round, with Serena Ventures leading the round by investing a substantial $7.3 million in equity. This marks Serena Williams' first investment in an East African startup, highlighting the significance of this funding round. Numida's CEO, Mina Shahid, shared insights into the fundraising process and the future plans for the company. Shahid mentioned that the fundraising process took about four months to complete, and the choice to partner with Serena Ventures was driven by shared values and a common goal to improve the lives of individuals across the globe. Serena Ventures has shown a keen interest in African markets, particularly in sectors like Fintech and healthcare. Numida intends to utilize the capital to strengthen its presence in Uganda, where it currently serves 18,000 active clients. The company aims to double its client base within the next 12 to 18 months while also expanding into new African markets such as Egypt, Nigeria, Kenya, and Ghana. Shahid emphasized that the model for micro and small business financing that Numida has developed in Uganda is transferable to other African countries with similar challenges. The company is confident in its ability to scale its operations without the need for immediate additional fundraising. While equity played a significant role in the latest funding round, Numida recognizes the importance of a balanced blend of equity and debt to support its lending activities. The $12.3 million round included $7.3 million in equity and $5 million in committed debt, with the potential to increase the debt facility to $15 million based on performance metrics. The African working capital market presents a substantial opportunity for investors and companies, with an estimated 20 million micro and small businesses across the continent lacking sufficient access to working capital financing. Numida views this segment as a $5 billion market opportunity and aims to address the needs of underserved businesses by providing accessible and efficient financial solutions.