In order to introduce its banking products, Lulalend, a South African digital lender firm that offers a range of loans to underserved small and medium-sized businesses, has acquired $35 million in Series B funding.
The funding round was led by Lightrock, a worldwide impact investor. The International Finance Corporation (IFC) and Quona Capital led its $6.5 million Series A round, and new investors included DEG, Triodos Investment Management, and Women’s World Banking.
Lulalend will use the funding to grow its loan book, expand its new product to other markets, and invest in technology and talent to accelerate the rollout of its new digital business banking platform.
The launch of the digital bank, including marketing, will receive a large portion of this cash, according to Trevor Gosling, CEO of Lulalend. For the $35 million needed to fund our markets, we can raise more than $200 million in debt.
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Lulalend intends to significantly strengthen its services in accordance with the lending institutions’ policies regarding money.
Although fintechs are known to start out by unbundling financial services for distinctiveness from banks through the process of rearrangement with models similar to banks in their developmental stage, Trevor Gosling explains that the launch is committed to introducing customers to realistic opportunities associated with financial services formed during the pandemic.
Gosling and Neil Welman formed the company. “We recognized that improving credit availability is just one of the things we can do for our firms because we have more time to think about how to engage with our clients and understand their needs and challenges. We built our virtual bank. We currently manage cash flow from start to finish for businesses since they need financial access.”
Lulalend’s achievements
Lulalend, the first automated online business funding source, was established in 2014 with the goal of making cash flow management for business owners simpler. The company’s stockholders include people like Neil Welman (CTO), Alexander Schuetz, IFC, Quona, Hallman Holding International, Accion, Team Africa Ventures, Newid Capital, Lutz Seebacher, and its staff.
It is officially listed as a South African SME Finance Association member. Lulalend has created ad hoc credit solutions for its partners over the past three years, including telecommunications provider Vodacom, fintech company Yoco, and an e-commerce behemoth. Additionally, it takes part in a credit distribution plan that has reportedly had some degree of effectiveness.
Gosling claims that what sets Lulalend apart from rivals is its success and speed in disbursing loans and setting up bank accounts by providing ongoing support services to its consumers. He said this in order to make his statement.
According to a statement from the corporation, it has distributed billions of rand to small businesses all around South Africa.
Since its debut in 2014, Lulalend has raised $35 million in a Series B round headed by global impact investor Lightrock, with contributions from new investors including the German development finance institution DEG, Triodos Investment Management, and Women’s World Banking, as well as its $6.5 million Series A round’s lead investors, the International Finance Corporation (IFC) and Quona Capital.
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What to know about Lightrock
Lightrock is a global private equity platform that invests in companies that benefit people and the environment. Over the next decade, Lightrock hopes to develop and mainstream impact investing across asset classes using its pioneering position and knowledge. “An impact mindset on global megatrends, pioneering knowledge, and deep local context enable us to uncover and nurture scalable, high-impact company solutions to global challenges and build risk- and return-balanced portfolios.”
Prince Max von Liechtenstein, Founder, and Chairman said “I believe growth, technology, and effect will become even more significant. I am eager to drive this development with Lightrock and contribute to a more sustainable capitalism.”
Lightrock, which has its global offices in London, has a diverse staff of more than 90 private equity professionals, 40% of whom are women, from more than 14 different nations on four continents. They speak more than 20 languages fluently and have a plethora of experience in impact investment, as well as a demonstrated history of success in leadership, entrepreneurship, and portfolio management.
The Board of Directors of Lightrock, a corporation run by managing partner and CEO Pal Erik Sjatil, is presided over by Prince Max von Liechtenstein. The impact investing efforts at LGT was initiated in 2009 by Prince Max von Liechtenstein.
