US-based venture capital (VC) fund Enygma has invested US$ 1 million into a Zambian-based microfinance start-up Lupiya.
Lupiya was founded in 2015 as an online marketplace for microloans. This makes it a branchless microfinance platform that uses technology to make borrowing much simpler for individuals and businesses located across the country to access loans whenever they need one.
Lupiya not only allow individuals at remote and rural areas to access funds but also tailors the loans to personal circumstances of customers on the basis of: personal, business and gender women.
The investment will aid Lupiya to hurriedly achieve its aim of promoting financial inclusion.
Evelyn Kaingu, CEO and co-founder of Lupiya was very optimistic about the opportunities this investment will bring and said, “We are thrilled with this investment, it has come at the right time in the interesting financial climate many businesses are experiencing as a result of the Covid-19 pandemic,”
Lupiya’s goal is to provide this 70% of Zambians access to financial services by 2022.
Sarah Dusek, Managing Partner and co-founder of Enygma Ventures also believed the investment will have a far reaching effect. “We are excited to partner with Lupiya to make an extraordinary difference to the lives of particularly female Zambian business owners, who run small and medium sized businesses. We believe the access to capital is a key strategic initiative to enable job creation, enterprise stimulus and in turn economic growth.”
Muchu Kaingu, co-founder of Lupiya also added that the investment will not only impact Zambian businesses but have a ripple effect in the SADC region.
“This investment will enable us to continue ensuring Zambians can easily access financial services when they need them. We are excited to work with Enygma in transforming the economic outlook of the SADC region.”