Lula Raises USD 21 M To Expand SME Lending In South Africa

Lula, a South African fintech founded in 2014 by Trevor Gosling and Michael Foley, has raised ZAR 340 M (~USD 21 M) in funding from Dutch development bank FMO to scale lending to small and medium-sized businesses. The local-currency facility will support Lula’s technology-driven platform, which provides fast, flexible working capital to SMEs often underserved by traditional banks.

The funding builds on Lula’s recent momentum. In 2023, the company raised USD 35 M in Series B funding led by Lightrock, with participation from IFC, Quona Capital, DEG, and Triodos Investment Management. It also secured an additional USD 10 M local-currency loan from IFC in late 2024.

Lula’s platform helps businesses access short-term capital for expenses such as inventory, salaries, and operations, with local-currency lending reducing exposure to exchange-rate volatility for borrowers.