The financial sector is on a technological boom. It is one industry that is undertaking technological advancements in each of its department. Industry professionals are becoming more aware of the upcoming trends and trying to adopt them for their own benefit. Along with that, it can not be ignored that companies along with knowledge also need money to expand themselves.
Trending in the latest news, Lulalend, a South African startup had raised $6.5m in series A round of funding. This round of investment was co-led by IFC and Quona Capital. The firm is an online automated provider of short-term funding especially built for small and medium enterprises. The amount of money that the company has acquired will definitely help it to upscale in the market.
Lulalend- Mode of Fast Funding for SMEs
Lulalend is a South African firm based in Capetown founded by Trevor Gosling and Neil Welman in 2014. The startup uses a technology that functions on the credit scoring process. Lulalend aims to provide capital assistance to small and medium enterprises who are unable to acquire easy working capital.
The company’s credit scoring tech enables automatic approval of loans applied by SMEs. To acquire a loan from Lulalend, enterprises only need a bank account, they can apply online and receive automatic approval. Lulalend offers loans ranging from $1500 up to $70,000. Depending on the amount taken, the time period varies anywhere between 6 to 12 months.
Lulalend’s founders, Trevor Gosling, and Neil Welman expressed that the majority of the SMEs in South Africa said that access to working capital would help them grow their business easily. The company as a whole is working to achieve this goal with its services.
Future Opportunities for Lulalend
Lulalend has previously raised funding in 2016. In the latest round of investment, it has acquired a sum of $6.5 million from IFC and Quona Capital along with its former investors, Accion Venture Lab and Newid Capital. With the new amount raised, the startup plans to fill the funding gap existing in the South African market.
Both the investment companies involved in this funding round are excited to fund Lulalend. The officials at Quona Capital said that they are happy to partner with IFC to fund a growing company like Lulalend. Since the startup is built a seamless user experience that solves a massive funding gap for many SMEs in South Africa, they are sure that they have invested their money in the right place and it is bound to grow.
SEE ALSO: Tink Partners With NatWest and Raises €56 million
Since the process of lending money to small businesses is changing, investments firms are looking forward to partnering with digital innovators like Lulalend. Lulalend’s authority is ready to partner with big financial firms and banks in order to provide greater financial support to as many SMEs of South Africa thus creating newer job opportunities and promoting economic growth.
Subscribe to iTMunch for more updates in the world of technology, AI, HR, marketing and more!
