4G Capital announced the completion of its second round of fundraising. The investment was secured by a $2m debt facility from Ceniarth LLC, bringing the total raised to $4million.
4G Capital will use the investment for onward lending to its growing customer base of informal micro, small and medium-sized enterprises across Kenya and Uganda.
Since its inception in 2013, 4G Capital has grown exponentially, lending over 750k loans valued at $90m. Over the last 12months, revenue has increased by 97% as 4G Capital supported over 60,000 MSMEs. By the end of this year, 4G Capital will have lent $43.6m, surpassing all expectations.
Repayment rates remain above national averages, at over 94% (without refinancing). “The rapid expansion of mobile and technology-based financial services in emerging markets has the potential to provide critical capital to individuals previously excluded from the financial system”, said Diane Isenberg, Founder of Ceniarth. “With this expansion comes great responsibility to ensure that customers understand and benefit from these services and are not exploited by providers focused more on growth than client impact. We are proud to support 4G Capital as a best-in-class financial lender that listens to the needs of the communities that it serves.”
Wayne Hennessy-Barrett, CEO and Founder of 4G Capital, said: “We are incredibly honored to welcome Ceniarth as our latest investor. Together, we share a fierce passion for improving conditions for the underserved and neglected businesses of the African economy by providing financial services that sustainably unlock potential and help communities. 4G Capital has surpassed all key performance targets for 2019, and Ceniarth’s investment will help us meet the demands of our growing customer base and continue our positive impact into the future – a fantastic way to end a great year.”
