Kenyan startup Zanifu has raised $11.2 million in debt-equity funding for its platform providing micro, small and medium-sized businesses with inventory financing.
Beyond Capital Ventures and Variant Investments led the round, with participation from Founders Factory Africa, AAIC Investment, Google Black Founders Fund and Launch Africa, according to TechCrunch.
The Zanifu Android app allows small retailers to procure inventory from their suppliers and pay once they have sold the goods.
The company does not require users to put up any collateral or to have a credit history, only an existing relationship with the supplier.
CEO Steve Biko tells TechCrunch that about 13,000 micro-firms have used the platform, paying between five and six per cent interest a month, with a 99.2% repayment rate.
The new funding will be used to expand the platform to distributors and scale operations in Kenya.