Kenya-based fintech and microfinancing firm 4G Capital has secured $2 million in funding which will be used to loan out to small and medium-sized enterprises, according to local media reports.
The funding for 4G Capital has come from Ceniarth. 4G Capital will also use the funding to increase its customer base in Kenya as well as Uganda.
Besides forwarding finance to small businesses, 4G Capital also provides financial literacy training to help businesses sustain and grow at their respective markets.
Wayne Hennessy-Barrett, founder and chief executive at 4G Capital told the media, “4G Capital has surpassed all key performance targets for 2019, and Ceniarth’s investment will help us meet the demands of growing customer base and continue our positive impact into the future.”
According to 4G Capital, it has approved around 750,000 loans to SMEs in Kenya which is estimated to be worth $90 million. This year, 4G Capital expects the total number of loans forwarded to small businesses to be around 60,000 worth $43 million, which is a significant increase of more than 50 percent compared to the last six years.
After its success in Kenya, 4G Capital launched its services in Kalerwe and Nakawa markets in Kampala, Uganda. The company recently secured funding from FSD Uganda to conduct important research and support its rollout across the country.
According to 4G Capital, it has raised around $4 million in funding so far. The firm has more than 89 branches across Kenya with more than 80,000 customers, 75 percent of whom are women and 77 percent from rural areas.