Cape Town-based digital lender Lulalend has raised a US$6.5 million Series A round co-led by IFC and Quona Capital.
Lulalend will use the funding to build its technology product and hire personnel in a bid to reach more SMEs in South Africa.
“The biggest thing is strengthening our balance sheet so we can access traditional debt funding to grow our loan book,” CEO and founder Trevor Gosling told TechCrunch.
Founded in 2014 by Neil Welman and Trevor Gosling, Lulalend uses an online application process and internal credit metrics to provide fast and easy working capital funding to small businesses in South Africa.
As part of the US$6.5 million Series A, 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.
Image Credits: Lulalend