South African Digital Lender Lulalend Raises USD 35 M Series B Round

South African digital lender Lulalend has raised USD 35 M in a Series B round led by international impact investor Lightrock, with participation from new investors, including the German development finance institution DEG, Triodos Investment Management and Women’s World Banking, alongside IFC and Quona Capital.

The Cape Town-based startup uses an online application process and internal credit metrics, a proprietary credit scoring algorithm and a diverse set of alternative data sources, to provide short-term loans to small and medium-sized businesses that are often unable to obtain working capital. The digital lender now offers its customers Lula, a credit-led neobanking solution, in partnership with pan-African bank Access Bank, which they can use to open bank accounts.