Zanifu, a Kenyan fintech startup, has raised $11.2 million investment in a pre-Series A debt and equity funding round.
The round was led by Beyond Capital Ventures and Variant Investments, with participation from Founders Factory Africa, AAIC Investment, Google Black Founders Fund, and existing investor Launch Africa.
The new investment raised will support Zanifu in its mission to provide inventory financing to micro, small, and medium-sized businesses in Kenya.
Founded by Steve Biko and Sebastian Mithika in 2018, Zanifu is a regulated financial technology company that provides inventory financing for MSMEs. The company enables MSMEs’ supply chains to get access to working capital. Its platform allows small retailers to procure inventory from their suppliers and pay later.
Zanifu’s inventory financing solution has the potential to significantly impact micro, small, and medium-sized enterprises (MSMEs) in Kenya.
These businesses often struggle to obtain traditional financing due to various challenges, such as limited credit history, lack of collateral, and the high costs associated with borrowing. By leveraging the value of their inventory, Zanifu enables MSMEs to access the funds they need to grow their businesses and seize opportunities.
Furthermore, Zanifu intends to invest in its technological infrastructure to enhance its service delivery. By leveraging advanced financial technology solutions, Zanifu can streamline its processes, improve efficiency, and provide a seamless experience for its customers. This technology-driven approach will allow Zanifu to scale rapidly and cater to the needs of a growing customer base.
Commenting, Steve Biko, the co-founder of Zanifu said: “We have decided to go deep into Kenya. We are focusing on serving more micro-SMEs and also getting more distributors into our fold, and ensuring the capital we are dispersing is actually generating returns for these businesses and helping them grow. So that’s really how we’re looking at it for now. We will go to other markets once we get to profitability.”
