Tugende, a Ugandan-grown technology-enabled asset finance company, collected $17 million in debt capital, coming from three lenders and a crowdfunding platform to scale up its operations in Kenya as well as fulfill the needs of a growing customer base.
Nordic Microfinance Initiative (NMI) offered $5m, $6m came from Symbiotics, $1m was crowdsourced from Lendahand, and $5M was raised from Goldfinch.
Launched in 2012, Tugende uses asset finance, technology, and a high-touch customer support model to help micro, small and medium enterprises (MSMEs) own income-generating assets.
The company's core product is a lease-to-own package for boda boda (motorbike taxi) drivers and they have so far served over 54,000 customers.
The financing package to Bodas includes road safety and financial training, medical and life insurance, safety equipment, driving permits, hands-on support through the journey to ownership.
"Ownership doubles the typical client’s daily profits, and Tugende clients also build a digital credit profile and score as they own their asset, unlocking new opportunities as their businesses grow, and Tugende has been diversifying into new asset product lines both in mobility and non-mobility segments," reads an official statement.
Beyond motorcycles, Tugende is currently serving small business borrowers with asset finance packages including vehicles, boat engines, and equipment for retail shops.
Previous investors in Tugende include Toyota Tsusho Investment Fund Mobility 54, U.S.-based Global Partnerships’ Social Venture Fund, Denali Venture Philanthropy and Segal Family Foundation.
Tugende currently employs more than 800 full-time staff working across 23 branches in Uganda and 5 in Kenya.
