Asilimia, a Kenyan fintech firm that is developing the digital infrastructure to connect African MSMEs to the formal financial sector, has raised $2 million in funding to expand its workforce, offer additional services, and enter new markets in East Africa.
Asilimia, which was founded in 2017, is attempting to close a $500 billion financing gap for developing businesses who are unable to obtain loans or other financial help due to a lack of accurate financial records. It addresses this conundrum by solving the dual difficulties of accounting and financial inclusion by utilising the digital data that MSMEs already have, which is verifiable.
The firm just acquired $1 million in pre-seed capital from a diverse group of investors, including two-time unicorn Fredrik Jung Abbou (co-founder of Kry and Lendo), Norrsken Impact Accelerator, and other famous European startups. Bpifrance and GreenTec Capital Partners were also part of a debt transaction that raised $1 million.
The pre-seed cash will assist the company to develop and expand, while the loan capital will allow Asilimia to lend credit to MSMEs, allowing them to scale their enterprises.
“Africa’s informal businesses are the backbone of its economy and we want to unlock their GDP to drive further growth and development across the continent. Our focus over the last few years has been to build a solution that works and this new funding will enable us to take it into new markets and impact the lives and livelihoods of more business owners,” said Tekwane Mwendwa, chief executive officer (CEO) and co-founder of Asilimia.
“MSMEs play a vital role across Africa and making it easier for them to succeed is great for the continent as a whole. Tekwane and the team have built a solution that works and we are delighted to be supporting them as they drive prosperity in a key sector for the African economy,” said Funda Sezgi, co-founder and managing director at Norrsken Impact Accelerator.
