South African startup Lulalend, an online automated provider of short-term funding for small and medium enterprises (SMEs), has raised Series A funding of US$6.5 million to help it scale.
Founded in 2014 by Trevor Gosling and Neil Welman, Lulalend utilises proprietary credit scoring technology to enable it to provide quick decisions, fast funding, and transparent pricing to SMEs.
The startup last raised funding in 2016, and has now taken on US$6.5 million in investment in a round co-led by IFCand Quona Capital, with participation from existing investors Accion Venture Lab and Newid Capital. The new funding will help Lulalend scale in response to South Africa’s significant funding gap for small businesses.
“69 per cent of small and medium-sized businesses in South Africa say that access to working capital would help their businesses grow,” said Trevor Gosling, co-founder and chief executive officer (CEO) of Lulalend.