Tugende acquires $ 3.6 million in equity financing

By Paul Murungi

Tugende, a technology asset finance company operating in Uganda, has entered into a $ 3.6 million equity financing deal (Shs13b).

The round was led by Partech, with participation from Enza Capital, a regional angel investor.
The investment, which was structured last year, is an extension of Tugende’s Series A financing, which was announced in September 2020 led by Toyota Tsusho’s Mobility 54.

This brings the total amount of equity raised for Series A to $ 9.9 million. Series A funding is a venture capital investment made in a company that has developed a track record with an established user base and consistent revenue numbers.

“Last year, in the midst of the pandemic, we decided to invest in Tugende,” said Mr. Tidjane Deme, partner at Partech, noting: “Tugende combines technology and strong operations to help millions of professionals to grow their businesses and drive economies forward. . ”

“We will support Tugende to build the technology platform, refine the model and expand into new markets.”
The funds are expected to be deployed to support the closing of new debt capital and fuel Tugende’s growth in Uganda and Kenya.

Mr. Michael Wilkerson, Managing Director of Tugende, said the company is using innovative technology to integrate a range of social considerations to create a new kind of credit scores.
This, he said, will increase access to capital in a range of African markets where entrepreneurs have limited credit histories or collateral.


The company, which primarily deals in motorcycle and vehicle financing, is keen to diversify into other asset finance products, including retail stores and agriculture.

“Tugende has demonstrated its ability to unlock sustained entrepreneurial activity through its productive asset financing activity for informal sector entrepreneurs,” said Mike Mompi, Partner, Enza Capital.

Tugende is one of the leading fintech companies in Uganda to attract venture capital finance, which is recorded as low in Uganda, with the exception of African countries such as Rwanda, Kenya, Nigeria, Egypt and South Africa with the highest venture capital funding.

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Carol M. Barragan

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