South African online lending startup LulaLend has raised a new round of financing in order to expand its team and scale its offering.
The investment round in LulaLend – which began development in August 2014 and was launched in May 2015 – was led by Accion Venture Lab, with participation from Newid Capital and Hallmann Holding International Investment GmbH.
LulaLend focuses on providing productive funding for small and medium enterprises (SMEs) throughout South Africa, leveraging technology and a proprietary algorithm to evaluate applicants and provide funding quickly, conveniently, and transparently.
The startup, which plans to expand throughout the region, allows businesses to apply for and receive funding remotely, and promises transparent pricing with no hidden fees or costs.
“LulaLend was founded in 2014 to provide quick, transparent online credit to small businesses in South Africa, and we’re excited to receive this new round of funding that validates our approach and our impact,” said chief executive officer (CEO) Trevor Gosling, who founded the company alongside chief technology officer (CTO) Neil Welman.
“The support of these investors will be invaluable in helping LulaLend expand our team and further develop and scale our offering to provide South Africa’s businesses with the financing they need.”
Accion CEO and president Michael Schlein said many small businesses around the world are too small to receive credit from traditional commercial banks, yet too large to receive credit through traditional microfinance institutions.
“LulaLend aims to address this credit gap in South Africa, and has the potential to serve the entire region, helping small business owners access funding, build credit histories, and participate in the global economy,” he said.