Kenyan startup Zanifu has secured $11.2 million in debt-equity funding to enhance its platform that provides inventory financing for micro, small, and medium-sized businesses.
The funding round was led by Beyond Capital Ventures and Variant Investments, with contributions from Founders Factory Africa, AAIC Investment, the Google Black Founders Fund, and Launch Africa, as reported by TechCrunch.
The Zanifu Android app enables small retailers to acquire inventory from their suppliers and defer payment until after the goods are sold. Notably, the platform does not require users to provide collateral or possess a credit history—only an established relationship with the supplier is necessary.
According to CEO Steve Biko, around 13,000 micro-firms have utilized the platform, paying interest rates between five and six percent monthly, and the company boasts an impressive 99.2% repayment rate. The newly raised funds will be directed towards expanding the platform to cover distributors and scaling operations within Kenya.