Verdant Capital Hybrid Fund Strengthens Portfolio with USD 2 M Mezzanine Investment in UsPlus

Verdant Capital Hybrid Fund has made its fifth major investment, completing a USD 2 M mezzanine deal structured as junior convertible debentures in South Africa-based fintech company, UsPlus Limited.

Since its inception in 2015, the fintech company is known for its innovative financial solutions tailored for the SME sector. It focuses on transforming SME financing in the region by providing innovative working capital solutions tailored to the unique needs of businesses traditionally excluded from formal financial systems.

By financing transferable instruments such as invoices, purchase orders, and contracts, UsPlus enables SMEs to unlock liquidity, thereby improving their operational capabilities.

The company’s developmental agenda places a particular emphasis on women-led and sustainability-driven ventures supporting diverse industries, including manufacturing, logistics, agriculture, and renewable energy.

The fresh investment from Verdant Capital Hybrid Fund is expected to strengthen UsPlus’ capital base, positioning the company for accelerated growth in its invoice factoring services. This will not only allow UsPlus to better serve its existing clients but also expand its reach across key sectors, helping more SMEs access the financial support they need to thrive.

The capital injection is also expected to crowd in additional senior debt funding, further enhancing the company’s financial stability and capacity for growth.

The partnership is a natural fit for Verdant Capital Hybrid Fund, which seeks to deploy capital for meaningful social and environmental impact while mitigating credit risk. Managed by Verdant Capital, a leading investment bank operating since 2013, the Fund is a pan-African investment vehicle specializing in mezzanine capital for financial services.

Launched in 2021 as the firm’s flagship investment management initiative, the Fund focuses on digitally enabled financial institutions serving Micro, Small, and Medium-sized Enterprises (MSMEs).

With an initial close of USD 38 M and a target of USD 100 M by H1 2025, the Fund focuses on hybrid capital instruments such as subordinated debt, mezzanine financing, preference shares, and stapled investment structures. These investments aim to strengthen capital positions, attract additional funding, and drive financial inclusion across the continent.

Growing Investment Portfolio Across Africa

The UsPlus investment marks the Verdant Capital Hybrid Fund’s fifth deal since its first close, building on a series of successful investments that reinforce its mission:

• Watu Credit Uganda (August 2022) – USD 7 M
  The Fund’s first investment was a USD 7 M commitment to Watu Credit Uganda, an asset financing company focused on providing financing for two-wheelers to expand its presence and aid financial inclusion for the unbanked through tech-driven credit solutions.

• LOLC Africa (June 2023) – USD 9 M
  A USD 9 M structured loan was provided to LOLC Africa, a subsidiary of the Sri Lankan microfinance giant LOLC. This investment, aimed at supporting LOLC’s expansion of MSME financing in Zambia, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the DRC, made Verdant Capital Hybrid Fund the first external investor in LOLC Africa’s operations.

• Mogo Kenya (June 2023) – USD 7 M
  In the same month, the Fund invested USD 7 M in Mogo Auto Limited (Mogo Kenya), a subsidiary of Eleving Group, to support motorbike, tuk-tuk, and car financing in Kenya.

• Zeepay (April 2024) – USD 3 M
  A USD 3 M equity investment was made in Zeepay, a Ghanaian remittance and mobile money provider, to boost its financial position and support its expansion, particularly as remittance inflows into Africa continue to grow.

With its latest investment in UsPlus, Verdant Capital Hybrid Fund continues to drive financial inclusion and SME empowerment across Africa. As the Fund works toward its USD 100 million target, it remains focused on identifying and investing in companies that promote broad-based economic participation while ensuring strong risk management and sustainable returns.

Through strategic investments in high-impact financial institutions, the Fund is playing a pivotal role in reshaping Africa’s financial landscape and unlocking new opportunities for businesses and communities alike.