Lupiya, a Zambian based microfinance startup has received an investment of $1 million from Enygma Ventures, a US venture capital (VC) fund.
Founded in 2015, Lupiya is an online marketplace for microloans. It is a branch-less, innovative digital microfinance platform that leverages technology to make the process of borrowing simpler and easier so that people and businesses located across the country even in rural, remote areas can access financial services.
Loans are tailored to either personal, business, or for women.
The investment will enable Lupiya to further its goals in fostering financial inclusion through its service offered, with a focus on ensuring women are able to participate in the economy through its financial inclusion strategy.
The fintech startup is working hard to close the gap and provide access to financial services to all.
Evelyn Kaingu, CEO and co-founder of Lupiya expresses her excitement on receiving the investment.
“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,”
Statistics have revealed that an estimated 70% of Zambians do not have access to formal financial services due to lacking the necessary collateral required to secure a loan. 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 explains that the investment will have a far-reach effect.
“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, expresses that the investment is integral to aiding the startup in reaching its goal but also in positively impacting the SADC economic 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.”
This article originally appeared on Ventureburn.
Featured image: Lupiya co-founders, Evelyn and Muchu Kaingu (Supplied)
NEW REPORT: Nigerian startups raised $28.35m in Q2 2020; only about 4.5% of that came from local investors. Find out more in the full report.
Introducing the Built in Africa podcast, which spotlights African startups, innovators and everything that makes them tick. Listen and subscribe here.
Techpoint Build 2020 is holding virtually in August. Register free now to attend.