Kenyan fintech startup, IMFact has secured a £3 million ($3.9m) investment from FSD Africa Investments (FSDAi), the investment arm of FSD Africa.
Peter Fiala, Chief Investment Officer, IMFact made a statement saying: “IMFact passed the extensive scrutiny of FSDAi and we are extremely delighted to have scaled through the due diligence process because it has paved the way for them to become a major investor in IMFact following the successful financial raise of our third-round capital close.
This investment is sure to pave the way for further capital investors to support further release of capital to our fast-growing list of clients.”
“We are delighted to be working with IMFact to support the growing financing of MSMEs in Kenya. We look forward to seeing the impact the investment has on Kenya’s pharmaceutical and medical sector and we hope to bridge the funding gap among small scale businesses by encouraging further scaling of fintech solutions” said, Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments, said.
FSDAi’s investment looks to promote the growth of technology-enabled, “pooled receivables” financing across Africa. According to our research, in terms of this type of funding, Africa lags behind global averages, accounting for less than 1% of global volumes with Kenya accounting for a penetration rate of less than 2%. Only South Africa has a developed factoring business on the continent,
IMFact is a non-deposit financial institution providing operating capital to SMEs using supply chain finance. IMFact being a “pooled receivables” factoring company, buys big invoices from SMEs for a mix of delayed payment and upfront cash, allowing sellers invest in new merchandise, expand their business, and pay suppliers without having to wait for bills to be received.
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