Zambian asset financing startup Rent to Own has completed a seed round of US$1.05 million to scale across the country and into other markets.
Rent to Own provides high-impact assets to small scale-entrepreneurs and smallholder farmers in rural Zambia, offering an “all-in-one” package of uncollateralised financing, delivery, installation, and equipment training.
So far, the startup has delivered over 7,000 productive use assets and achieved a repayment rate of 96 per cent. The company reached its first operationally break-even months in the last two quarters of 2018, and is ready to scale in Zambia and beyond with this new funding.
The cash has come from existing shareholder AHL Venture Partners, which significantly increased its investment, as well as Small Foundation and Jordan Engineering. A Series A investment round is on the horizon for the first half of next year.
“The closing of this Seed Round marks a milestone for Rent to Own in its journey to one million customers. We are excited to have the backing of strong investors like AHL, Small Foundation, and Jordan Engineering, and the continued support of Shell Foundation and others,” said chief executive officer (CEO) Jeffrey Scheidegger.
“Access to the right equipment is a real solution to unlocking the great potential of entrepreneurs in rural, underserved markets, we’re excited to work with our customers, agents, investors and suppliers to reach one million customers.”